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...

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Bibliographic Details
Main Authors: Portugal, Pedro, Varejao, José
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2009
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19187347124919055299-Why-do-firms-use-fixed-term-co.htm
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author Portugal, Pedro
Varejao, José
author_facet Portugal, Pedro
Varejao, José
collection Library items
description "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."
format TEXT
geographic Portugal
id 19187347124919055299_48469c11c3a1457daa63c5f179887740
institution ETUI-European Trade Union Institute
is_hierarchy_id 19187347124919055299_48469c11c3a1457daa63c5f179887740
is_hierarchy_title Why do firms use fixed-term contracts?
language English
physical 29 p.
Digital
publishDate 2009
publisher Bonn
IZA
spellingShingle Portugal, Pedro
Varejao, José
fixed term labour contract
human resources
statistics
temporary employment
Why do firms use fixed-term contracts?
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=116254693443
title Why do firms use fixed-term contracts?
topic fixed term labour contract
human resources
statistics
temporary employment
url https://www.labourline.org/KENTIKA-19187347124919055299-Why-do-firms-use-fixed-term-co.htm