Do temporary workers receive risk-premiums? Assessing the wage effects of fixed-term contracts in West-Germany by matching estimators compared with parametric apporaches

Tobias Hagen

No 01-71, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: The wage effects of fixed-term contracts (FTCs) are analysed with the GSOEP for West Germany. Different estimators which take into account selection bias are used. It is shown that propensity score matching estimators which are usually applied for the evaluation of active labour market programmes are well-suited for the analysis of this topic, whereas parametric approaches find unrealistically large negative effects. The empirical evidence rejects compensating wage differentials as well as strong negative wage effects of FTCs.

Keywords: Fixed-term Employment; Wage Differentials; Propensity Score Matching (search for similar items in EconPapers)
JEL-codes: C14 C35 J31 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5427

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