Non-standard work, job polarisation and inequality

This chapter provides evidence for the implication of trends in non-standard work for individual and household earnings and income inequality. It first presents the sociodemographic characteristics of non-standard workers before discussing the contribution of non-standard work to overall changes in employment. It shows that, in a majority of OECD countries, standard jobs have disappeared in the middle of the distribution in terms of wages and skill, while non-standard jobs have contributed to an increase in jobs at both ends of the distribution. Non-standard jobs tend to pay lower wages than standard jobs, especially at the bottom of the earnings distribution, thereby raising earnings inequality. The chapter then looks at the impact of non-standard work on household incomes and shows that non-standard workers living alone or with other nonstandard workers suffer from higher chances of low income and poverty. Finally, the chapter examines the work incentives and adequacy effects of tax and benefit rules. It finds that some non-standard workers, such as the self-employed, usually face different statutory rules and shows that taxes and benefits reduce poverty gaps for non-standard workers but create work disincentives for moving from inactivity to work.