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Flexibilisation without Hesitation? Temporary Contracts and Workers’ Satisfaction

  • Adrian Chadi

    ()

    (Institute for Labour Law and Industrial Relations in the EU, University of Trier)

  • Clemens Hetschko

    ()

    (School of Business and Economics, Freie Universitaet Berlin)

Fixed-term contracts are often considered a key policy tool for increasing employment. As we show that contract limitation lowers job satisfaction using data from the German Socio- Economic Panel study, we detect a drawback of promoting temporary employment that has not been identified so far. We find that the “honeymoon-hangover” effect of a new job must be taken into account to reveal this result. We examine reasons why employees suffer from temporary contracts and analyse the “Flexicurity” idea of compensating workers with security. Our findings contribute to research on workers’ well-being as well as to the debate on labour market flexibilisation.

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Paper provided by Institute of Labour Law and Industrial Relations in the European Union (IAAEU) in its series IAAEU Discussion Papers with number 201304.

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Date of creation: Mar 2013
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Handle: RePEc:iaa:dpaper:201304
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