Flexibility, labour cost and segmentation of employment: the case of mini jobs and zero hours contracts

Employment contract types and, more generally, working relationships are one of the privileged objects of the reforms brought forward by the EU Countries between finding new flexicurity balances for all workers and promoting employment at the margins. Zero Hours Contracts and Mini Jobs, two contractual types in the United Kingdom and Germany toolbox are examples of second type. The German device appears more structured, especially after the minimum wage entry into force in 2015. In the Government’s intentions the Mini Jobs had to pursue various goals: create additional low wage employment for marginal workers reducing tax wedge; reduce the undeclared work in families; to allow workers and retirees to supplement their low incomes; promote participation of second earner (mainly women) through tax advantages and reduction of disincentives; give income opportunities to students; promote the reintegration of unemployed. These goals have been pursued effectively even through much of the merit goes to the health of the German production system. The goals of Zero Hours Contract are more limited. According to British tradition, this contract responds to the demand for flexibility of the labour market. UK and Germany chose to rule the segmentation not to eliminate it. The problem for these countries as with other EU countries is how to regulate the working relationships having in mind a minimum level of rights and social protection for all workers (employees, self-employed and new "piecework" workers) without losing economic dynamism.

Keywords: Labour contracts, Mini Job, Zero Hours Contract

Jel codes: J38, J41, J48

Luciano Forlani, Flessibilità, costo del lavoro e segmentazione dell’occupazione: il caso dei mini job e dei contratti a zero ore in "ECONOMIA E SOCIETÀ REGIONALE " 3/2017, pp 8-26, DOI: 10.3280/ES2017-003002