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The effects of fixed-term contracts on workers in Colombia

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  • Luz Karime Abadía Alvarado

Abstract

This paper studies the effects of fixed-term contracts on workers. Specifically, the paper analyzes their impact on wages and on satisfaction levels. Regulations governing fixed-term and indefinite contracts in Colombia and the main labor reforms related to these two types of contract are analyzed. Women, young and low -educated workers, who work in small firms, in the private sector and in construction or manufacturing are most likely to have fixed-term contracts. In terms of wages, we found a significant raw and adjusted wage gap against workers with fixed-term contracts. Finally, we found, as expected, evidence that fixed-term contracts reduce the level of worker satisfaction. ***** Este artículo estudia los efectos de los contratos a término fijo en los trabajadores en cuanto a su impacto en salarios y nivel de satisfacción. Se analizan las principales reformas laborales relacionadas con contratos indefinidos y a término fijo. Mujeres, jóvenes y trabajadores con bajos niveles de educación, que trabajan en firmas pequenas, en el sector público y en los sectores de construcción o industria manufacturera son los más propensos a tener contratos a término fijo. Se encuentra, además, una importante brecha salarial observada y ajustada en contra de trabajadores con contrato a término fijo, así como menores niveles de satisfacción para estos.

Suggested Citation

  • Luz Karime Abadía Alvarado, 2014. "The effects of fixed-term contracts on workers in Colombia," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, August.
    • Handle: RePEc:col:000093:012111
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    File URL: http://www.fce.unal.edu.co/media/files/documentos/Cuadernos/63/v33n63a06.pdf
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    References listed on IDEAS

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    Cited by:

    1. Luz Karime Abadía Alvarado & Sara De la Rica, 2020. "The evolution of the gender wage gap in Colombia: 1994 and 2010," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 39(81), pages 857-895, July.

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    More about this item

    Keywords

    Types of contracts; labor contracts; fixed-term and indefinite contract; wage gap; instrumental variable.;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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