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Do temporary workers receive risk-premiums? Assessing the wage effects of fixed-term contracts in West-Germany by matching estimators compared with parametric apporaches

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  • Hagen, Tobias

Abstract

The wage effects of fixed-term contracts (FTCs) are analysed with the GSOEP for West Germany. Different estimators which take into account selection bias are used. It is shown that propensity score matching estimators which are usually applied for the evaluation of active labour market programmes are well-suited for the analysis of this topic, whereas parametric approaches find unrealistically large negative effects. The empirical evidence rejects compensating wage differentials as well as strong negative wage effects of FTCs.

Suggested Citation

  • Hagen, Tobias, 2001. "Do temporary workers receive risk-premiums? Assessing the wage effects of fixed-term contracts in West-Germany by matching estimators compared with parametric apporaches," ZEW Discussion Papers 01-71, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:5427
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Gunther Tichy, 2014. "Flexicurity – A Concept Doomed to Failure," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(8), pages 537-553, August.
    2. McGinnity, Frances & Mertens, Antje, 2002. "Fixed-term contracts in East and West Germany: Low wages, poor prospects?," SFB 373 Discussion Papers 2002,72, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.

    More about this item

    Keywords

    Fixed-term Employment; Wage Differentials; Propensity Score Matching;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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