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Causes and Consequences of Labor Market Flexibility

Project description

A closer look at the evolving world of work

The world of work is changing and shows no signs of slowing down. Most recently, it has been affected by the Covid pandemic. However, globalisation and technological change have also had a big impact on the modern workplace. The ERC-funded LABFLEX project will focus on alternative work arrangements like outsourcing, sub-contracting, flexible scheduling and flexible pay jobs. These have become the ‘new normal’. The project will investigate the causes and consequences of labour market flexibility. It will try to explain the rise in wage inequality. The findings will paint a picture of the supply and the demand side of the labour market, facilitating a study of flexibility in job contracts.

Objective

Globalization and technological change have transformed the workplace and the organization of labor. At the core of these major developments is the degree of flexibility in the labor market. Alternative work arrangements, e.g. outsourcing, sub-contracting, flexible scheduling, and flexible pay jobs have become a common feature of labor markets across the globe. While most economists would argue that labor market flexibility facilitates reaping the benefits of globalization and technology growth, these developments can have far reaching consequences for the division of resources in society. Indeed, the recent decades have witnessed a sharp rise in wage inequality. LABFLEX is motivated by these developments and seeks to investigate the causes and consequences of labor market flexibility.

LABFLEX raises a series of questions: Do differences in job contracts reflect shifts in worker preferences, or do they mirror advances in technology that facilitate gains from organizing job tasks differently? What are the impacts of flexibility in job contracts on wage inequality and gender wage gaps? Are workers being compensated for the adverse work conditions or the higher income risks, or do changes in job contracts reflect changes in the sharing of rents between workers and firms? How do labor market institutions affect flexibility? And what is the role of labor market policies?

To answer these questions, LABFLEX will for the first-time link register data to large-scale experimental evidence on workers’ stated preferences for a wide array of work and pay arrangements, and an exhaustive full-text corpus of vacancies with information on job attributes. This will allow drawing a very detailed picture of both the supply and the demand side of the labor market, facilitating a study of flexibility in job contracts. Combining these data with experimental and structural methods, LABFLEX will provide new evidence on the causes and consequences of labor market flexibility.

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Topic(s)

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HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

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(opens in new window) ERC-2021-STG

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Host institution

UNIVERSITETET I OSLO
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 500 000,00
Address
PROBLEMVEIEN 5-7
0313 Oslo
Norway

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Region
Norge Oslo og Viken Oslo
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 500 000,00

Beneficiaries (1)

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