Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35968
Authors: 
Portugal, Pedro
Varejão, José
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers 4380
Abstract: 
Temporary forms of employment account for a variable but never trivial share of total employment in both the U.S. and in Europe. In this article we look at how one specific form of temporary employment - employment with fixed-term contracts - fits into employers' hiring policies. We find that human capital variables (schooling, skills and employer-provided training) as measured at the levels of the worker and the workplace are important determinants of the employers' decisions to hire with fixed-term contracts and to promote temporary workers to permanent positions. Those employers that hire more with fixed-term contracts are also those that are more likely to offer a permanent position to their newly-hired temporary employees. Our results indicate that fixed-term contracts are used as mechanisms for screening workers for permanent positions.
Subjects: 
Fixed-term contracts
adjustment costs
labor demand
JEL: 
J23
J41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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