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Are flexible contracts bad for workers? Evidence from job satisfaction data

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Author Info
John S Heywood
Colin Green

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Abstract

If workers can choose between permanent and flexible contracts, compensating wage differentials should arise to equalize on-the-job utility in the two types of contracts. Estimating job satisfaction using the British Household Panel Survey shows that agency and casual contracts are associated with routinely lower satisfaction. This results because the low job satisfaction associated with less job security is not offset by higher compensation or other job characteristics. Job security is sufficiently important that holding constant this one facet of satisfaction eliminates the overall gap in job satisfaction between flexible and permanent contracts.

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Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 005276.

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Date of creation: 2007
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Handle: RePEc:lan:wpaper:005276

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Related research
Keywords: Flexible Contracts; Job Satisfaction; Job Security;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August. [Downloadable!] (restricted)
  3. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September. [Downloadable!] (restricted)
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  4. Cynthia L. Gramm & John F. Schnell, 2001. "The Use of flexible staffing arrangements in core production jobs," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 54(2), pages 245-258, January.
  5. Chris Forde & Gary Slater, 2005. "Agency Working in Britain: Character, Consequences and Regulation," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 43(2), pages 249-271, 06. [Downloadable!] (restricted)
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  6. John S. Heywood & W. Stanley Siebert & Xiangdong Wei, 2007. "The implicit wage costs of family friendly work practices," Oxford Economic Papers, Oxford University Press, vol. 59(2), pages 275-300, April. [Downloadable!] (restricted)
  7. Jos Van Ommeren & Mihails Hazans, 2008. "Workers' Valuation of the Remaining Employment Contract Duration," Economica, London School of Economics and Political Science, vol. 75(297), pages 116-139, 02. [Downloadable!] (restricted)
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  9. Deardorff, Alan V & Stafford, Frank P, 1976. "Compensation of Cooperating Factors," Econometrica, Econometric Society, vol. 44(4), pages 671-84, July. [Downloadable!] (restricted)
  10. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May. [Downloadable!] (restricted)
  11. Daniel S. Hamermesh, 2004. "Subjective Outcomes in Economics," NBER Working Papers 10361, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. Duncan, Greg J & Stafford, Frank P, 1980. "Do Union Members Receive Compensating Wage Differentials?," American Economic Review, American Economic Association, vol. 70(3), pages 355-71, June. [Downloadable!] (restricted)
  13. Theodossiou, I. & Vasileiou, E., 2007. "Making the risk of job loss a way of life: Does it affect job satisfaction?," Research in Economics, Elsevier, vol. 61(2), pages 71-83, June. [Downloadable!] (restricted)
  14. Colin Green & John S. Heywood, 2008. "Does Performance Pay Increase Job Satisfaction?," Economica, London School of Economics and Political Science, vol. 75(300), pages 710-728, November. [Downloadable!] (restricted)
  15. Marloes de Graaf-Zijl, 2005. "Compensation of On-call and Fixed-term Employment: the Role of Uncertainty," Tinbergen Institute Discussion Papers 05-120/3, Tinbergen Institute. [Downloadable!]
  16. Clark, A.E., 1995. "Job Satisfaction and Gender: Why Are Women so Happy at Work?," DELTA Working Papers 95-10, DELTA (Ecole normale supérieure).
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  17. Moretti, Enrico, 2000. " Do Wages Compensate for Risk of Unemployment? Parametric and Semiparametric Evidence from Seasonal Jobs," Journal of Risk and Uncertainty, Springer, vol. 20(1), pages 45-66, January. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Colin Green & Gareth Leeves & P Kler, 2008. "Flexible contract workers in inferior jobs: reappraising the evidence," Working Papers 005350, Lancaster University Management School, Economics Department. [Downloadable!]
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