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The effects of fixed-term contracts on workers in Colombia

Luz Abadia Alvarado ()

Revista Cuadernos de Economía, 2014

Abstract: This paper studies the effects of fixed-term contracts on workers. Specifically, the paper analyzes their impact on wages and on satisfaction levels. Regulations governing fixed-term and indefinite contracts in Colombia and the main labor reforms related to these two types of contract are analyzed. Women, young and low -educated workers, who work in small firms, in the private sector and in construction or manufacturing are most likely to have fixed-term contracts. In terms of wages, we found a significant raw and adjusted wage gap against workers with fixed-term contracts. Finally, we found, as expected, evidence that fixed-term contracts reduce the level of worker satisfaction. ***** Este artículo estudia los efectos de los contratos a término fijo en los trabajadores en cuanto a su impacto en salarios y nivel de satisfacción. Se analizan las principales reformas laborales relacionadas con contratos indefinidos y a término fijo. Mujeres, jóvenes y trabajadores con bajos niveles de educación, que trabajan en firmas pequenas, en el sector público y en los sectores de construcción o industria manufacturera son los más propensos a tener contratos a término fijo. Se encuentra, además, una importante brecha salarial observada y ajustada en contra de trabajadores con contrato a término fijo, así como menores niveles de satisfacción para estos.

Keywords: Types of contracts; labor contracts; fixed-term and indefinite contract; wage gap; instrumental variable. (search for similar items in EconPapers)
JEL-codes: J01 J23 J31 J41 (search for similar items in EconPapers)
Date: 2014
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