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The Cost of Flexibility at the Margin. Comparing the Wage Penalty for Fixed-term Contracts in Germany and Spain using Quantile Regression

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  • Antje Mertens
  • Vanessa Gash
  • Frances McGinnity
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    Abstract

    Germany and Spain are typically regarded as 'rigid' economies, yet both have had different experiences of fixed-term jobs. Using quantile regression we find that in West Germany the earnings of permanent and fixed-term workers are most similar among high earners and most dissimilar among low earners. In Spain, the wage penalty shows little variation across the distribution of wages. This pattern was also found for different occupational groups, although there are clear differences in the absolute wage penalty across occupations. In conclusion we caution against generalizing findings from Spain to other 'rigid' European labour markets. Copyright 2007 The Authors. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2007.

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    Bibliographic Info

    Article provided by CEIS in its journal LABOUR.

    Volume (Year): 21 (2007)
    Issue (Month): 4-5 (December)
    Pages: 637-666

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    Handle: RePEc:bla:labour:v:21:y:2007:i:4-5:p:637-666

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    Cited by:
    1. Allmendinger, Jutta & Hipp, Lena & Stuth, Stefan, 2013. "Atypical employment in Europe 1996-2011," Discussion Papers, Presidential Department P 2013-003, Social Science Research Center Berlin (WZB).
    2. 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.
    3. Christian Pfeifer, 2012. "Fixed-term contracts and wages revisited using linked employer-employee data," Journal of Labour Market Research, Springer, vol. 45(2), pages 171-183, July.
    4. Ramos, Raul & Sanromá, Esteban & Simón, Hipólito, 2014. "Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain," IZA Discussion Papers 8158, Institute for the Study of Labor (IZA).
    5. Sebastian Nielen & Alexander Schiersch, 2012. "Productivity in German manufacturing firms: Does fixed-term employment matter?," Schumpeter Discussion Papers sdp12004, Universitätsbibliothek Wuppertal, University Library.

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