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Fixed-term Employment, Work Organization and Job Satisfaction: Evidence from German Individual-Level Data

  • Michael Beckmann

    ()

  • Thomas Cornelissen

    (University of Basel)

The present paper examines the joint effect of fixed-term employment and work organization on job satisfaction using individual-level data from the German Socio-Economic Panel GSOEP). Specifically, we analyze whether workers who are heterogeneous in terms of the type of working contract (fixed-term vs. permanent) do also differ with regard to job satisfaction, when they perform under comparable work organizational conditions. Such information would be quite valuable for employers, because they can learn about the responsiveness of heterogeneous workers to innovative work organizational practices. For this purpose, we at first estimate a linear fixed effects model, thereby controlling for unobserved time-constant characteristics. In a second step, we account for potential remaining endogeneity by combining the fixed effects approach with a two-stage estimation strategy. Our empirical results show that in terms of job satisfaction fixed-term workers and their permanent counterparts respond differently to a number of organizational practices including task diversity, employee involvement, social relations at work, general working conditions, and career prospects. The results may be used by employers to improve their concept of diversity management and specifically the job design of heterogeneous workers.

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Paper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2009/10.

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Date of creation: 2009
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Handle: RePEc:bsl:wpaper:2009/10
Contact details of provider: Postal: Peter-Merian-Weg 6, Postfach, CH-4002 Basel
Web page: http://wwz.unibas.ch

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  1. Cornelißen, Thomas, 2006. "Job characteristics as determinants of job satisfaction and labour mobility," Hannover Economic Papers (HEP) dp-334, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  2. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Askenazy, Philippe & Caroli, Eve, 2006. "Innovative Work Practices, Information Technologies and Working Conditions: Evidence for France," IZA Discussion Papers 2321, Institute for the Study of Labor (IZA).
  4. Boockmann, Bernhard & Hagen, Tobias, 2008. "Fixed-term contracts as sorting mechanisms: Evidence from job durations in West Germany," Labour Economics, Elsevier, vol. 15(5), pages 984-1005, October.
  5. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  6. Daniel S. Hamermesh, 2004. "Subjective Outcomes in Economics," Southern Economic Journal, Southern Economic Association, vol. 71(1), pages 2-11, July.
  7. Van Reenen, John & Caroli, Eve, 2001. "Skill-Biased Organizational Change? Evidence from a panel of British and French establishments," Economics Papers from University Paris Dauphine 123456789/10093, Paris Dauphine University.
  8. Anna Cristina D’Addio & Tor Eriksson & Paul Frijters, 2003. "An Analysis of the Determinants of Job Satisfaction when Individuals’ Baseline Satisfaction Levels May Differ," CAM Working Papers 2003-16, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  9. Alina Ileana Petrescu & Rob Simmons, 2008. "Human resource management practices and workers' job satisfaction," International Journal of Manpower, Emerald Group Publishing, vol. 29(7), pages 651-667, November.
  10. Mark Wooden & Diana Warren, 2003. "The Characteristics of Casual and Fixed-Term Employment: Evidence from the HILDA Survey," Melbourne Institute Working Paper Series wp2003n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  11. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
  12. Origo, Federica & Pagani, Laura, 2009. "Flexicurity and job satisfaction in Europe: The importance of perceived and actual job stability for well-being at work," Labour Economics, Elsevier, vol. 16(5), pages 547-555, October.
  13. Francis Green, 2002. "Why Has Work Effort Become More Intense?," Studies in Economics 0207, School of Economics, University of Kent.
  14. Federica Origo & Laura Pagani, 2008. "Workplace flexibility and job satisfaction: some evidence from Europe," International Journal of Manpower, Emerald Group Publishing, vol. 29(6), pages 539-566, September.
  15. Bentolila, Samuel & Saint-Paul, Gilles, 1992. "The macroeconomic impact of flexible labor contracts, with an application to Spain," European Economic Review, Elsevier, vol. 36(5), pages 1013-1047, June.
  16. Thomas Cornelißen, 2009. "The Interaction of Job Satisfaction, Job Search, and Job Changes. An Empirical Investigation with German Panel Data," Journal of Happiness Studies, Springer, vol. 10(3), pages 367-384, June.
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