Heigh Ho, Heigh Ho: The Way We (Would Like to) Work Now

While the nonstandard labor contract is nonstandard no more, our understanding of the option value to the worker of the flexibility provided by such contracts is still limited. In this paper we derive the discount from the... [ view full abstract ]

While the nonstandard labor contract is nonstandard no more, our understanding of the option value to the worker of the flexibility provided by such contracts is still limited. In this paper we derive the discount from the market wage, full remuneration as defined by the standard contract, that a worker would be willing to offer an employer to gain a personally optimal work schedule while still fulfilling all the terms and conditions of employment.  We then consider whether, were this offered, it be enough to compensate the firm given that its flexibility needs may not match those of the worker, and, if it is not enough, what can be done to improve the match between worker and firm flexibility needs.