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Chasing the carrot – actual working hours of fixed-term employees

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  • Mario Bossler
  • Philipp Grunau

Abstract

Fixed-term contracts can serve as a screening device to reveal the true ability of workers. To achieve promotion to a permanent position, fixed-term employees have an incentive to prove themselves by providing higher effort than competing co-workers by means of longer working hours. Applying fixed effects estimation to the German register data, we find that employees work longer hours on fixed-term contracts. This effect is stronger for labour market entrants and employees that are newly hired. We further show that actual hours of work are particularly large when there is competition among co-workers to receive promotion to a permanent position.

Suggested Citation

  • Mario Bossler & Philipp Grunau, 2019. "Chasing the carrot – actual working hours of fixed-term employees," Applied Economics Letters, Taylor & Francis Journals, vol. 26(14), pages 1148-1152, August.
    • Handle: RePEc:taf:apeclt:v:26:y:2019:i:14:p:1148-1152
    DOI: 10.1080/13504851.2018.1540836
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    Cited by:

    1. Gürtzgen, Nicole & Kubis, Alexander & Küfner, Benjamin, 2019. "IAB-Stellenerhebung 2018: Bei befristeten Einstellungen wenden die Betriebe weniger Mittel auf (IAB Job Vacancy Survey 2018 : Employers spend less on filling fixed-term positions)," IAB-Kurzbericht 201917, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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