The Labor Market Impacts of Fair Work Legislation

Abstract

Fair Workweek (FWW) ordinances, which typically require employers to provide workers with advance notice of their schedules and extra pay for last-minute changes, have become an increasingly debated policy tool to address the unpredictability of low-wage work in the United States. In this article, the author studies the labor market impacts of the Oregon FWW law using data on treated workers from the Quarterly Workforce Indicators and American Community Survey, and a variety of empirical approaches that address the factors complicating such a labor market analysis. Taken together, the evidence points to limited effects on the average labor market outcomes of workers covered by the legislation. However, findings indicate increased employment and hours worked for men, and decreased employment and hours worked for women. Also, results show consistent evidence of decreased average monthly earnings for newly hired women at treated employers. Despite the ability of employers to bypass compensation requirements through voluntary standby lists, this study identifies compositional effects on the workforce resulting from FWW legislation.