Measuring the Utility Cost of Temporary Employment Contracts Before Adaptation: A Conjoint Analysis Approach

Konstantinos Pouliakas and Ioannis Theodossiou

Economica, 2010, vol. 77, issue 308, 688-709

Abstract: This study attempts to estimate the ‘utility cost’ of temporary employment contracts purged of the psychological effects of adaptation. A conjoint analysis experiment is used that examines the ex ante contract preferences of a unique sample of low‐skilled employees from seven European countries. It is shown that permanent contract holders request a significant wage premium to move to a temporary job. In contrast, temporary workers are indifferent between permanent and temporary contracts, ceteris paribus. The evidence suggests that individuals have a psychological immune system which neutralizes events that challenge their sense of wellbeing, such as job insecurity.

Date: 2010
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https://doi.org/10.1111/j.1468-0335.2009.00786.x

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Working Paper: Measuring the Utility Cost of Temporary Employment Contracts before Adaptation: A Conjoint Analysis Approach (2008)
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