Flexibilization without hesitation? Temporary contracts and job satisfaction

Adrian Chadi and Clemens Hetschko

Oxford Economic Papers, 2016, vol. 68, issue 1, 217-237

Abstract: We use German panel data to examine how fixed-term employment affects utility derived from working. In contrast to previous research, we present evidence that working on a temporary contract lowers current job satisfaction. We discover that the honeymoon effect of a new job must be considered to reveal this result. Job insecurity appears to be the source of dissatisfaction associated with fixed-term employment. We also consider regional unemployment and perceived employment security to shed light on the basic notion of flexicurity policies. Finally, we apply a life course perspective on employment careers to discuss the overall role of temporary employment for individual job satisfaction.

Date: 2016
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