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The Hidden Costs of Fixed Term Contracts: the Impact On Work Accidents

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  • María Guadalupe

Abstract

This paper assesses whether there is a systematic difference between the accident rates of fixed term and permanent contract workers that is not just the result of a compositional effect. A pure contractual effect might exist because the short duration of the temporary contract reduces the incentives to invest in specific human capital leading to a higher accident rate. I provide two identification strategies to control for selection and reporting biases. The results confirm there is a pure contractual effect that increases the accident probability by 4 percent to 7 percent.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0551.

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Date of creation: Oct 2002
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Handle: RePEc:cep:cepdps:dp0551

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: work accidents; fixed-term contracts; productivity;

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  1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(480), pages F189-F213, June.
  2. Fortin, Bernard & Lanoie, Paul & Laporte, Christine, 1999. "Is Workers' Compensation a Substitute for Unemployment Insurance?," Journal of Risk and Uncertainty, Springer, Springer, vol. 18(2), pages 165-88, August.
  3. Olivier Blanchard & Augustin Landier, 2001. "The Perverse Effects of Partial Labor Market Reform: Fixed Duration Contracts in France," NBER Working Papers 8219, National Bureau of Economic Research, Inc.
  4. Catalina Amuedo-Dorantes, 2002. "Work safety in the context of temporary employment: The Spanish experience," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(2), pages 262-285, January.
  5. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
  6. Juan F. Jimeno & Luis Toharia, 1993. "The effects of fixed-term employment on wages: theory and evidence from Spain," Investigaciones Economicas, Fundación SEPI, Fundación SEPI, vol. 17(3), pages 475-494, September.
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