Measuring the Utility Cost of Temporary Employment Contracts Before Adaptation: A Conjoint Analysis Approach
AbstractThis study attempts to estimate the 'utility cost' of temporary employment contracts purged of the psychological effects of adaptation. A conjoint analysis experiment is used that examines the "ex ante" contract preferences of a unique sample of low-skilled employees from seven European countries. It is shown that permanent contract holders request a significant wage premium to move to a temporary job. In contrast, temporary workers are indifferent between permanent and temporary contracts, "ceteris paribus". The evidence suggests that individuals have a "psychological immune system" which neutralizes events that challenge their sense of wellbeing, such as job insecurity. Copyright (c) The London School of Economics and Political Science 2009.
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Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 77 (2010)
Issue (Month): 308 (October)
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Other versions of this item:
- Pouliakas, Konstantinos & Theodossiou, Ioannis, 2008. "Measuring the Utility Cost of Temporary Employment Contracts before Adaptation: A Conjoint Analysis Approach," MPRA Paper 14166, University Library of Munich, Germany.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
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