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Restrictions of fixed term employment contracts: Evidence from a German reform

Eduard Brüll

No 19-034, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper examines the impact of legal restrictions on fixed-term contracts on employment, wages and the careers of labour market entrants. Specifically, I analyse a 2001 German reform that made it more difficult for establishments that are not subject to employment protection to hire workers on fixed-term contracts. Using a Difference-in-Differences approach, which compares establishments subject to employment protection with those that are not both before and after the reform, I find that the reform has reduced the use of fixed-term contracts, but has not markedly changed net employment. However, the reform has had positive effects on the career stability of post-reform labour market entrants.

Keywords: Fixed-Term Contracts; Employment Protection; Labour Market Segmentation; Germany (search for similar items in EconPapers)
JEL-codes: J21 J41 J68 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-eur and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:19034

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