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Flexibilisation without hesitation? Temporary contracts and workers' satisfaction

Adrian Chadi and Clemens Hetschko ()

No 2013/3, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: Fixed-term contracts are often considered a key policy tool for increasing employment. As we show that contract limitation lowers job satisfaction using data from the German Socio-Economic Panel study, we detect a drawback of promoting temporary employment that has not been identified so far. We find that the honeymoon-hangover effect of a new job must be taken into account to reveal this result. We examine reasons why employees suffer from temporary contracts and analyse the Flexicurity idea of compensating workers with security. Our findings contribute to research on workers` well-being as well as to the debate on labour market flexibilisation.

Keywords: labour market; flexibilisation; job satisfaction; temporary contracts (search for similar items in EconPapers)
JEL-codes: J28 J41 (search for similar items in EconPapers)
Date: 2013
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