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The effect of personal contracts in public administration in Israel on length of service

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  • Noam Michelson

    (Bank of Israel)

Abstract

Personal employment contracts for employees in professional positions in public administration in Israel create a more flexible employment format than that in collective agreements, with a higher level of pay than that in the case of collective wage agreements. Thus, personal contracts, whether used to keep excellent employees or used to afford greater managerial flexibility, are likely to affect the length of service of employees with such contracts. This study examines the effect of personal contracts on the length of service, and the actual difference in wage levels between those with personal contracts as opposed to those covered by collective agreements. The main finding is that the probability of leaving the job is higher among those who switched to personal contracts, but this is not a uniform result: in the first two years after the move to a personal contract the probability of leaving is lower than that of employees under collective agreements, but thereafter the situation is reversed, and those with personal contracts are more likely to leave.

Suggested Citation

  • Noam Michelson, 2012. "The effect of personal contracts in public administration in Israel on length of service," Bank of Israel Working Papers 2012.02, Bank of Israel.
    • Handle: RePEc:boi:wpaper:2012.02
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    File URL: https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2012.02.pdf
    File Function: First version, 2012
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    Cited by:

    1. repec:ilo:ilowps:486459 is not listed on IDEAS
    2. Shoshana Neuman, 2014. "Job Quality in Segmented Labor Markets: The Israeli Case," Working Papers 2014-12, Bar-Ilan University, Department of Economics.
    3. Neuman, Shoshana, 2015. "Job Quality in Segmented Labor Markets: The Israeli Case," CEPR Discussion Papers 10734, C.E.P.R. Discussion Papers.
    4. Neuman, Shoshana., 2014. "Job quality in segmented labour markets : the Israeli case: country case study on labour market segmentation," ILO Working Papers 994864593402676, International Labour Organization.
    5. Eitan Hourie & Miki Malul & Raphael Bar-El, 2018. "The Value of Job Security: Does Having It Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 1131-1145, October.
    6. Neuman, Shoshana, 2014. "Job Quality in Segmented Labor Markets: The Israeli Case," IZA Discussion Papers 8750, Institute of Labor Economics (IZA).

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