Arbeitspapier

Why do firms use fixed-term contracts?

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.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 4380

Klassifikation
Wirtschaft
Labor Demand
Labor Contracts
Thema
Fixed-term contracts
adjustment costs
labor demand
Befristeter Arbeitsvertrag
Arbeitsnachfrage
Humankapital
Anpassungskosten
Theorie
Portugal

Ereignis
Geistige Schöpfung
(wer)
Portugal, Pedro
Varejão, José
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2009

Handle
URN
urn:nbn:de:101:1-200910085849
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Portugal, Pedro
  • Varejão, José
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2009

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