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Determinants for Labour Contract Length: A French Microeconometric Study

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  • Mohamed Ben Halima

    ()
    (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)

  • Bassem Ben Halima

    (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)

Abstract

Two types of analyses are conducted to explain the determinants of labour contracts length. The first analysis emphasizes on the contracting costs and the level of uncertainty. The second analysis focuses on the incentive and selection effect of the contract length. This paper test the determinants for contract duration by means of econometric duration models. The estimates are carried out from French data (TDE). An econometric treatment of the endogeneity of the labour contract status and unobservable heterogeneity is carried out. Our results show that wages positively affect employment duration. This confirms the positive effect of contracting costs reported.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00365976.

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Date of creation: 2008
Date of revision:
Publication status: Published, The Empirical Economics Letters, 2008, 7, 3, pp. 305-315
Handle: RePEc:hal:journl:halshs-00365976

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00365976/en/
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Related research

Keywords: contract length ; duration model ; selection bias ; unobservable heterogeneity;

References

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  1. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
  2. Hagen, Tobias, 2003. "Do Fixed-Term Contracts Increase the Long-Term Employment Opportunities of the Unemployed?," ZEW Discussion Papers 03-49, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Rosen, A., 1995. "Temporarily asymmetric information and labour contracts," Labour Economics, Elsevier, vol. 2(1), pages 105-105, March.
  4. Cantor, Richard M, 1988. "Work Effort and Contract Length," Economica, London School of Economics and Political Science, vol. 55(219), pages 343-53, August.
  5. Danziger, Leif, 1988. "Real Shocks, Efficient Risk Sharing, and the Duration of Labor Contracts," The Quarterly Journal of Economics, MIT Press, vol. 103(2), pages 435-40, May.
  6. Gray, Jo Anna, 1978. "On Indexation and Contract Length," Journal of Political Economy, University of Chicago Press, vol. 86(1), pages 1-18, February.
  7. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones or Dead Ends?," LABORatorio R. Revelli Working Papers Series 8, LABORatorio R. Revelli, Centre for Employment Studies.
  8. Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 239-267.
  9. Alison L Booth & Juan J. Dolado & Jeff Frank, 2002. "Symposium On Temporary Work Introduction," Economic Journal, Royal Economic Society, vol. 112(480), pages F181-F188, June.
  10. Cantor, Richard, 1990. "Firm-Specific Training and Contract Length," Economica, London School of Economics and Political Science, vol. 57(225), pages 1-14, February.
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