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.