The Effects of Contingent Employment on Innovation and Entrepreneurship

67 Pages Posted: 15 Nov 2019 Last revised: 10 Feb 2020

See all articles by Sunwoo Hwang

Sunwoo Hwang

University of Cambridge Judge Business School; University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School; Korea University Business School

Date Written: November 6, 2019

Abstract

Using novel population-level data, this paper finds that job insecurity faced by contingent workforce impedes innovation and entrepreneurship. It examines marginally contingent workers in core functions, who may innovate as their secured colleagues undertaking the same tasks. Innovation increases for firms that secure the unsecured workers in the absence of managerial innovation input. Startups and jobs are created in industries and cities where security provision elevates within-firm innovative activities. This study exploits a Korean Supreme Court ruling against the contingent employment in core functions as a source of exogenous variation in a firm's choice between secured and unsecured labor.

Keywords: contingent worker, job security, innovation incentive, and entrepreneurship

JEL Classification: J41, J46, L26, O31

Suggested Citation

Hwang, Sunwoo, The Effects of Contingent Employment on Innovation and Entrepreneurship (November 6, 2019). Available at SSRN: https://ssrn.com/abstract=3482082 or http://dx.doi.org/10.2139/ssrn.3482082

Sunwoo Hwang (Contact Author)

University of Cambridge Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

HOME PAGE: http://www.sunwoohwang.com

Korea University Business School ( email )

Seoul, 136-701
United States

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