Flexible Labor Contracts, Firm-specific Pay, and Wages

Burak Uras, Jose Carreno and Harry Huizinga
Additional contact information
Jose Carreno: Central Bank of Chile, https://josegabocarreno.com

No 2026_104, Department of Economics Working Papers from Department of Economics, Williams College

Abstract: "In this paper, we use comprehensive employer-employee data for the Netherlands to investigate the labor income effects of flexible labor contracts in two different settings: wage determination as in the AKM model, and an analysis of earnings losses after job displacement. In both settings, we find that flexible contracts lead to lower wages, but that workers with flexible contracts primarily earn less because they work at or join lower paying firms. This suggests that the negative impact of flexible contracts on wage income may be overstated if firm-specific pay differentials are not properly accounted for."

Keywords: job displacement; flexible contracts; alternative work arrangements; earnings losses; firm-specific wage premiums; income disparities (search for similar items in EconPapers)
Pages: 22
Date: 2026-02-13
New Economics Papers: this item is included in nep-lab
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.36934/wecon:2026_104 Full text (application/pdf)

Related works:
Working Paper: Flexible Labor Contracts, Firm-specific Pay, and Wages (2024)
Working Paper: Flexible Labor Contracts, Firm-specific Pay, and Wages (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wil:wileco:2026_104

Ordering information: This working paper can be ordered from

The price is Free.

Access Statistics for this paper

More papers in Department of Economics Working Papers from Department of Economics, Williams College Williamstown, MA 01267. Contact information at EDIRC.
Bibliographic data for series maintained by Greg Phelan ().