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Employment probation as a sorting mechanism

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Author Info
Eng Loh
Abstract

Using data from the 1982 National Center for Research in Vocational Education employer survey, the author finds evidence strongly supporting the hypothesis that employment probation induces self-selection by workers. Those who accepted jobs with probationary employment tended to be more efficient workers and less likely to quit than those who took jobs without probation. The author hypothesizes that workers who fear they will not last through the probationary period, either because they are not sure their performance will be adequate or they think they may quit, will not apply for jobs with probation, whereas those who are more confident that their work will be acceptable and that they will not quit will apply for such jobs in order to obtain the higher wages that commonly attach to jobs with probation. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 47 (1994)
Issue (Month): 3 (April)
Pages: 471-486
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Handle: RePEc:ilr:articl:v:47:y:1994:i:3:p:471-486

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  1. Riphahn, Regina T. & Thalmaier, Anja, 1999. "Behavioral Effects of Probation Periods: An Analysis of Worker Absenteeism," IZA Discussion Papers 67, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Alison L. Booth & Marco Francesconi & Jeff Frank, 2000. "Temporary Jobs: Who gets them, what are they worth, and do they lead anywhere?," ILR working papers 054, Institute for Labour Research. [Downloadable!]
  4. Jan Sauermann, 2006. "Who invests in training if contracts are temporary? - Empirical evidence for Germany using selection correction," IWH Discussion Papers 14-06, Halle Institute for Economic Research. [Downloadable!]
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  6. Boockmann, Bernhard & Hagen, Tobias, 2005. "Befristete und andere "atypische" Beschäftigungsverhältnisse: Wird der Arbeitsmarkt funktionsfähiger? (Fixed-term and other "atypical" employment relationship : is the labour market's ability to fu," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 305-324. [Downloadable!]
  7. Sebastian Stolorz, 2005. "A Test of the Signalling Hypothesis - Evidence from Natural Experiment," Labor and Demography 0512008, EconWPA. [Downloadable!]
  8. Catalina Amuedo-Dorantes & Ricardo Serrano-Padial, 2006. "Wage Growth Implications of Fixed-Term Employment: An Analysis by Contract Duration and Job Mobility," Working Papers 0016, San Diego State University, Department of Economics. [Downloadable!]
  9. Wallette, Mårten, 2005. "Temporary Jobs and On-the-Job Training in Sweden - A Negative Nexus?," Working Papers 2005:13, Lund University, Department of Economics. [Downloadable!]
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