Competing for hours: unstable work schedules and underemployment among hourly workers in Canada

Abstract

Abstract This paper investigates the relationship between schedule instability and underemployment among hourly employees. The value to employers of specific hours of work often varies over short intervals, motivating variable scheduling and incomplete contracts that do not specify hours or availability. When employers offer variable weekly total hours, competition for scarce hours motivates employees to be available for work over a broader range of times. Workers may consequently be rewarded with more hours, but they garner fewer hours than their counterparts with stable hours. Cross-sectional analysis of the Canadian Workplace and Employee Survey demonstrates that underemployment is significantly more likely among hourly workers on unstable schedules. Longitudinal analysis indicates that even among the initially underemployed, who are strongly motivated to increase their availability, switching into an unstable schedule results in significantly fewer hours, providing evidence of employer-driven constraints on hours. There is no evidence of compensating differentials for unstable schedules.