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Fixed-term contracts

Author

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  • Werner Eichhorst

    (IZA, Germany)

Abstract

Fixed-term contracts have become a major form of employment in Europe. Available evidence about whether temporary jobs are a stepping stone to a permanent employment or are a dead end is mixed. The usefulness of these jobs depends on the institutional and economic environment. Fixed-term contracts can be a pathway from unemployment to employment, but their potential as a stepping stone to permanent employment is undercut if there is a strong degree of segmentation in labor markets. If that is the case, the labor flexibility motive of employers ends up dominating the screening function in offering a fixed-term contract.

Suggested Citation

  • Werner Eichhorst, 2014. "Fixed-term contracts," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-45, May.
    • Handle: RePEc:iza:izawol:journl:y:2014:n:45
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    References listed on IDEAS

    as
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    8. Centeno, Mário & Novo, Álvaro A., 2012. "Excess worker turnover and fixed-term contracts: Causal evidence in a two-tier system," Labour Economics, Elsevier, vol. 19(3), pages 320-328.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eichhorst, Werner & Konle-Seidl, Regina, 2016. "Evaluating Labour Market Policy," IZA Discussion Papers 9966, Institute of Labor Economics (IZA).
    2. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2019. "Dual Labour Markets Revisited," CESifo Working Paper Series 7479, CESifo.
    3. Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2020. "Opting Out, Collective Contracts and Labour Flexibility: Firm‐Level Evidence for The Italian Case," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 558-586, September.
    4. Makoto Masui, 2020. "The determinants of employers’ use of temporary contracts in the frictional labor market," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 803-834, November.
    5. Eichhorst, Werner & Wozny, Florian & Mähönen, Erno, 2015. "What Is a Good Job?," IZA Discussion Papers 9461, Institute of Labor Economics (IZA).
    6. Damiani, Mirella & Pompei, Fabrizio & Kleinknecht, Alfred, 2020. "When robots do (not) enhance job quality: The role of innovation regimes," MPRA Paper 103059, University Library of Munich, Germany.
    7. Eichhorst, Werner & Kalleberg, Arne & Portela de Souza, André & Visser, Jelle, 2019. "Designing Good Labour Market Institutions: How to Reconcile Flexibility, Productivity and Security?," IZA Discussion Papers 12482, Institute of Labor Economics (IZA).
    8. Eichhorst, Werner & Rinne, Ulf, 2016. "Promoting Youth Employment in Europe: Evidence-based Policy Lessons," IZA Policy Papers 119, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    fixed-term contracts; segmentation; employment; flexibility; employee screening; dual labor market;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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