IDEAS home Printed from https://ideas.repec.org/p/bsl/wpaper/2007-03.html
   My bibliography  Save this paper

Fixed-term employment and job satisfaction : evidence from individual-level data accounting for selectivity bias

Author

Listed:
  • Beckmann, Michael

    () (University of Basel)

  • Binz, Andrea
  • Schauenberg, Bernd

Abstract

The present paper examines the relationship between fixed-term employment and job satisfaction using individual-level data from the German Socio Economic Panel (GSOEP). According to theoretical expectations, fixed-term employment should be associated with a relative low level of job satisfaction, and the majority of empirical investigations is actually in line with this prediction. However, none of these studies accounts for the fact that a worker's choice of whether or not to accept a temporary working contract might substantially be driven by individual characteristics and would then be endogenous. In contrast to prior studies, our preferred model specification explicitly accounts for a potential selectivity bias. The estimation results of our treatment effects model indicate a positive connection between fixedterm employment and job satisfaction. Hence, we conclude that job satisfaction on average is not negatively affected by the pure duration of an employment contract, but by individual characteristics, job-related factors, and working conditions. Nevertheless, we would not recommend firms to replace permanent by fixed-term workers as the latter are more satisfied with their jobs associated with higher motivation and productivity levels. Instead, firms are encouraged to improve working conditions, especially for better educated and more tenured workers.

Suggested Citation

  • Beckmann, Michael & Binz, Andrea & Schauenberg, Bernd, 2007. "Fixed-term employment and job satisfaction : evidence from individual-level data accounting for selectivity bias," Working papers 2007/03, Faculty of Business and Economics - University of Basel.
  • Handle: RePEc:bsl:wpaper:2007/03
    as

    Download full text from publisher

    File URL: https://edoc.unibas.ch/16301/1/20091123141129_4b0a8a013ab31.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Freeman, Richard B, 1978. "Job Satisfaction as an Economic Variable," American Economic Review, American Economic Association, vol. 68(2), pages 135-141, May.
    3. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    4. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
    5. Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-991, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Fixed-term employment; job satisfaction; selectivity bias;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bsl:wpaper:2007/03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WWZ). General contact details of provider: http://edirc.repec.org/data/wwzbsch.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.