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Are flexible contracts bad for workers? Evidence from job satisfaction data

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  • C Green
  • J S Heywood

Abstract

If workers can choose between permanent and flexible contracts, compensating wage differentials should arise to equalize on-the-job utility in the two types of contracts. Estimating job satisfaction using the British Household Panel Survey shows that agency and casual contracts are associated with routinely lower satisfaction. This results because the low job satisfaction associated with less job security is not offset by higher compensation or other job characteristics. Job security is sufficiently important that holding constant this one facet of satisfaction eliminates the overall gap in job satisfaction between flexible and permanent contracts.

Suggested Citation

  • C Green & J S Heywood, 2007. "Are flexible contracts bad for workers? Evidence from job satisfaction data," Working Papers 590927, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:590927
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    References listed on IDEAS

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    Cited by:

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    4. Moreno Baruffini & Federica Origo, 2014. "Job satisfaction and flexicurity over the business cycle: evidence from Swiss individual-level data," ERSA conference papers ersa14p366, European Regional Science Association.
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    7. Colin Green & Parvinder Kler & Gareth Leeves, 2010. "Flexible Contract Workers in Inferior Jobs: Reappraising the Evidence," British Journal of Industrial Relations, London School of Economics, vol. 48(3), pages 605-629, September.

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