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http://hdl.handle.net/10419/35968
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| Title: | | Why do firms use fixed-term contracts?  |
| Authors: | | Portugal, Pedro Varejão, José |
| Issue Date: | | 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: | | urn:nbn:de:101:1-200910085849 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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