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Workers' Valuation of the Remaining Employment Contract Duration

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  • JOS VAN OMMEREN
  • MIHAILS HAZANS

Abstract

We introduce and apply a method for estimating workers' marginal willingness to pay for job attributes employing data on job search activity. Worker's willingness to pay for the remaining duration of the employment contract is derived. We provide evidence that workers attach substantial value to the remaining contract duration. A temporary worker with a remaining contract of six months is willing to pay about 10% of the monthly wage to increase the contract by one month.

Suggested Citation

  • 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, February.
  • Handle: RePEc:bla:econom:v:75:y:2008:i:297:p:116-139
    DOI: 10.1111/j.1468-0335.2007.00599.x
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    2. C Green & J S Heywood, 2007. "Are flexible contracts bad for workers? Evidence from job satisfaction data," Working Papers 590927, Lancaster University Management School, Economics Department.

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