Job polarization and non-standard work: Evidence from France

Using annual and quarterly data from the French LFS, we investigate the interplay between the extensive and intensive margins of labor adjustment, job polarization, and non-standard work (NS) along the business cycle. We find that the declines in aggregate work hours during economic downturns can primarily be attributed to the reduction in routine standard employment (R,S) during past recessions in France. We then study the dynamics of routine standard employment, highlighting several key findings: (i) The primary drivers of R,S employment are inflows from routine non-standard work (R,NS) and unemployment. (ii) Individuals who lose R,S jobs are more likely to transition to R,NS positions following a brief period of unemployment. (iii) A majority of transitions within this employment category occur within the same employer, resulting in asymmetric adjustments in individual working hours. This often involves a notable increase in hours following either a contractual upgrade or a change in employer. Finally, we draw a comparative analysis between these findings and the United States, where the dynamics of routine employment appear distinct, despite a similar trend in job polarization.