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Fixed‐term Contracts and Employment Adjustment: An Empirical Test of the Core–Periphery Hypothesis Using German Establishment Data

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  • CHRISTIAN PFEIFER

Abstract

Fixed‐term contracts (FTCs), an important feature of the employment relationship of the peripheral workforce, are analysed to test the following two hypotheses, which are based on dual labour market theory: (i) Firms use FTCs for the peripheral workforce to adjust the level of employment to the profit maximising level in case of demand fluctuations. (ii) Thanks to the utilisation of FTCs, the core workforce is less exposed to employment adjustment. Both hypotheses are supported by the results of the econometric analysis, which uses a German establishment panel.

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  • Christian Pfeifer, 2009. "Fixed‐term Contracts and Employment Adjustment: An Empirical Test of the Core–Periphery Hypothesis Using German Establishment Data," The Economic Record, The Economic Society of Australia, vol. 85(268), pages 92-107, March.
    • Handle: RePEc:bla:ecorec:v:85:y:2009:i:268:p:92-107
    DOI: 10.1111/j.1475-4932.2008.00531.x
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    2. Christian Pfeifer, 2012. "Fixed-term contracts and wages revisited using linked employer-employee data [Befristete Arbeitsverträge und Entlohnung neu untersucht mit verbundenen Arbeitgeber-Arbeitnehmer-Daten]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(2), pages 171-183, July.
    3. Alexander Lammers & Felix Lukowski & Kathrin Weis, 2023. "The relationship between works councils and firms’ further training provision in times of technological change," British Journal of Industrial Relations, London School of Economics, vol. 61(2), pages 392-424, June.
    4. Larisa Smirnykh, 2016. "Is Flexible Labor Good for Innovation? Evidence from Russian Firm-level Data," Foresight-Russia Форсайт, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 10(4 (eng)), pages 60-70.
    5. Pfeifer, Christian, 2007. "Eine theoretische und empirische Analyse der betrieblichen Determinanten von Teilzeitarbeit, Mini- und Midi-Jobs (A theoretical and empirical analysis of the company determinants of part-time work, mi," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 65-76.
    6. Ahmed Fayez Abdelgouad, 2015. "Determinants of Using Fixed-Term Contracts in the Egyptian Labor Market: Empirical Evidence from Manufacturing Firms Using World Bank Firm-Level Data for Egypt," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 4(1), pages 29-48.
    7. Ulrich Walwei, 2014. "Times of change: what drives the growth of work arrangements in Germany? [Zeiten des Wandels: Was treibt das Wachstum atypischer Erwerbsformen in Deutschland?]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(3), pages 183-204, September.
    8. Christian Pfeifer, 2014. "A Note on Dual Internal Labor Markets and Wages of Temporary Workers: Evidence from Linked-Employer-Employee Data," Journal of Labor Research, Springer, vol. 35(2), pages 133-142, June.
    9. Edoardo Di Porto & Leandro Elia & Cristina Tealdi, 2013. "The "emersion" effect: an ex post and ex ante social program evaluation on labor tax evasion in Italy," Working Papers 2/2013, IMT School for Advanced Studies Lucca, revised Jun 2013.

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