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Flexible contracts and human capital investments


  • Fouarge Didier
  • Grip Andries de
  • Smits Wendy
  • Vries Robert de

    (ROA rm)


As suggested by human capital theory, workers with flexible contracts participate lessoften in training than those with permanent contracts. We find that this is merely dueto the fact that flexworkers receive less employer–funded training, a gap they can onlypartly compensate for by their own training investments. Flexworkers particularlyparticipate less in firm–specific training that is meant to keep up with new skilldemands than workers with permanent contracts. However, for those who participatein employer–funded firm–specific training, a temporary contract appears to facilitatethe transition to a permanent contract with the same employer. However, this doesnot hold for participation in self–paid training. This training, which is usually generaltraining, does not help in finding a better job.

Suggested Citation

  • Fouarge Didier & Grip Andries de & Smits Wendy & Vries Robert de, 2011. "Flexible contracts and human capital investments," ROA Research Memorandum 013, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  • Handle: RePEc:unm:umaror:2011013

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    References listed on IDEAS

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    Cited by:

    1. Storm, Ilse & Uiters, Ellen & Busch, Mirjam C.M. & den Broeder, Lea & Schuit, Albertine J., 2015. "The relevance of work-related learning for vulnerable groups. Dutch case study of a Health Impact Assessment with equity focus," Health Policy, Elsevier, vol. 119(7), pages 915-924.
    2. Romina Giuliano & Stephan Kampelmann & Benoît Mahy & François Rycx, 2017. "Short Notice, Big Difference? The Effect of Temporary Employment on Firm Competitiveness across Sectors," British Journal of Industrial Relations, London School of Economics, vol. 55(2), pages 421-449, June.
    3. Murphy, Gavin & Siedschlag, Iulia & McQuinn, John, 2012. "Employment Protection and Innovation Intensity," Papers WP445, Economic and Social Research Institute (ESRI).

    More about this item


    education; training and the labour market;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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