Fixed-term contracts

Werner Eichhorst

IZA World of Labor, 2014, No izawol.45, 45

Abstract: Fixed-term contracts have become a major form of employment in Europe. Available evidence about whether temporary jobs are a stepping stone to a permanent employment or are a dead end is mixed. The usefulness of these jobs depends on the institutional and economic environment. Fixed-term contracts can be a pathway from unemployment to employment, but their potential as a stepping stone to permanent employment is undercut if there is a strong degree of segmentation in labor markets. If that is the case, the labor flexibility motive of employers ends up dominating the screening function in offering a fixed-term contract.

Keywords: fixed-term contracts; segmentation; employment; flexibility; employee screening; dual labor market (search for similar items in EconPapers)
JEL-codes: J60 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (12)

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