Does Fixed-Term Employment Have Spillover Effects on the Well-Being of Partners? A Panel Data Analysis for East and West Germany

Sonja Scheuring (), Jonas Voßemer, Anna Baranowska-Rataj () and Giulia Tattarini
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Sonja Scheuring: University of Bamberg
Jonas Voßemer: MZES Mannheim Centre for European Social Research
Giulia Tattarini: WZB Berlin Social Center

Journal of Happiness Studies, 2021, vol. 22, issue 7, No 8, 3021 pages

Abstract: Abstract This paper answers three research questions: What is the impact of fixed-term employment on the well-being of partners? How do these spillover effects differ by gender, and do gender differences depend on socialization in East or West Germany? Do individual well-being, perceived job insecurity, and financial worries mediate the spillover effects? We use longitudinal data from the Socio-Economic Panel (SOEP), 1995–2017, and a sample of heterosexual couples living together, to estimate fixed-effects panel regression models. In contrast to previous studies, we consider asymmetric effects of entering and leaving fixed-term contracts by focusing on transitions from unemployment into fixed-term and fixed-term into permanent jobs. Confirming previous research on spillover effects of unemployment, we find that fixed-term re-employment increases partners’ well-being and that these effects are larger in case of re-employment by men and partners’ socialization in West Germany. We also show that transitions from fixed-term to permanent jobs do not substantially increase the well-being of partners with little differences by gender and place of socialization. While the spillover effect of re-employment is mediated by changes in the well-being of the individual re-entering the labor market, changes in job insecurity and financial worries due to transitions from fixed-term to permanent jobs are too small to produce meaningful effects on well-being. Although fixed-term contracts have been referred to as a new source of inequality, our results show that they cause little difference in the well-being of individuals and their partners and that finding a job matters more than the type of contract.

Keywords: Fixed-term employment; Well-being; Spillover effects; Panel data; Mediation analysis; Germany (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10902-020-00353-2

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