What hides behind the fixed-term contracts wage gap?

In Portugal, about 20% of full-time workers are employed under a fixed-term contract. Using a rich longitudinal matched employer-employee dataset for Portugal, with more than 20 million observations and covering the 2002-2012 period, we confirm the common idea that fixed-term contracts are not desirable when compared to permanent ones, by estimating a conditional wage gap of -1.7 log points. Then, we evaluate the sources of that wage penalty by combining a three way high-dimensional fixed effects model with the decomposition of Gelbach (2014), in which the three dimensions considered are the worker’s unobserved ability, the firm’s compensation wage policy and the job title effect. It is shown that the average worker with a fixed-term contract is less productive than his/her permanent counterparts, explaining -3.92 log points of the FTC wage penalty. Additionally, the sorting of workers into lower-paid job titles is also responsible for -0.59 log points of the wage gap. Surprisingly, we found that the allocation of workers among firms mitigates the existing wage penalty (in 4.23 log points), as fixed-term workers are concentrated into firms with a more generous compensation policy. Finally, following Figueiredo et al. (2014), we further control for the worker-firm match characteristics and reach the conclusion that fixed-term employment relationships have an overrepresentation of low quality worker-firm matches, explaining 0.65 log points of the FTC wage penalty.

Fixed-term contracts and the duration distribution of unemployment

In the mid-1980s, many European countries introduced fixed-term contracts.Since then their labor markets have become more dynamic. This paper studiesthe implications of such reforms for the duration distribution ofunemployment, with particular emphasis on the changes in the durationdependence. I estimate a parametric duration model using cross-sectionaldata drawn from the Spanish Labor Force Survey from 1980 to 1994 to analyzethe chances of leaving unemployment before and after the introduction offixed-term contracts. I find that duration dependence has increased sincesuch reform. Semi-parametric estimation of the model also shows that forlong spells, the probability of leaving unemployment has decreased sincesuch reform.

Financing constraints and fixed-term employment contracts

This paper studies the interactions between financing constraints and theemployment decisions of firms when both fixed-term and permanent employmentcontracts are available. We first develop a dynamic model that shows theeffects of financing constraints and firing costs on employment decisions. Oncecalibrated, the model shows that financially constrained firms tend to use moreintensely fixed term workers, and to make them absorb a larger fraction of thetotal employment volatility than financially unconstrained firms do. We testand confirm the predictions of the model on a unique panel data of Italian manufacturingfirms with detailed information about the type of workers employedby the firms and about firm financing constraints.

Regulating Concessions of Toll Motorways, An Empirical Study on Fixed vs. Variable Term Contracts

Recent theoretical developments on concession contracts for long term infrastructure projects under uncertain demand show the benefits of allowing for flexible term contracts rather than fixing a rigid term. This study presents a simulation to compare both alternatives by using real data from the oldest Spanish toll motorway. For this purpose, we analyze how well the flexible term would have performed instead of the fixed length actually established. Our results show a huge reduction of the term of concession that would have dramatically decreased the firm’s benefits and the user’s overpayment due to the internalization of an unexpected traffic increase.

Optimal coexistence of long-term and short-term contracts in labor Markets

We consider a market where firms hire workers to run their projects and such projects differ in profitability. At any period, each firm needs two workers to successfully run its project: a junior agent, with no specific skills, and a senior worker, whose effort is not verifiable. Senior workers differ in ability and their competence is revealed after they have worked as juniors in the market. We study the length of the contractual relationships between firms and workers in an environment where the matching between firms and workers is the result of market interaction. We show that, despite in a one-firm-one-worker set-up long-term contracts are the optimal choice for firms, market forces often induce firms to use short-term contracts. Unless the market only consists of firms with very profitable projects, firms operating highly profitable projects offer short-term contracts to ensure the service of high-ability workers and those with less lucrative projects also use short-term contracts to save on the junior workers' wage. Intermediate firms may (or may not) hire workers through long-term contracts.

Site planning. : Instructions and information for architect-engineers engaged under cost-plus-a-fixed-fee contracts for design and supervision of emergency defense construction projects.

Apr. 14, 1941.

Firing and training costs and labour market segmentation

This dissertation consists of three essays on the labour market impact of firing and training costs. The modelling framework resorts to the search and matching literature. The first chapter introduces firing costs, both liner and non-linear, in a new Keynesian model, analysing business cycle effects for different wage rigidity degrees. The second chapter adds training costs in a model of a segmented labour market, accessing the interaction between these two features and the skill composition of the labour force. Finally, the third chapter analyses empirically some of the issues raised in the second chapter.

Befristete Arbeitsverträge : Ein praxisorientierter Leitfaden

This master thesis explains fixed-term contracts in practice. To illustrate this point, examples are provided for better understanding. It will be discussed at both the fixed-term with an objective reason and without objective reason. The second variant is also called moderate Expiration Calendar. Not only the benefits and advantages for the employer are enumerated, but also the special challenges and problems that may arise. Particularly with regard to the prohibition of previous employment.This thesis presents the interests fo employers and companies. The central research question is: What are the possibilities of limitation and there is the prohibition of previous employment unconstitutional? A special attention is given to the contractual formulation examples of limited contracts. It deals exclusively with applicable German and European law. A comparison with previous case-law does not take place in this master thesis.

The Part-time pay penalty in a segmented labor market

This paper is the first to examine the implications of switching to PT work for women's subsequent earnings trajectories, distinguishing by their type of contract: permanent or fixedterm. Using a rich longitudinal Spanish data set from Social Security records of over 76,000 prime-aged women strongly attached to the Spanish labor market, we find that PT work aggravates the segmentation of the labor market insofar there is a PT pay penalty and this penalty is larger and more persistent in the case of women with fixed-term contracts. The paper discusses problems arising in empirical estimation (including a problem not discussed in the literature up to now: the differential measurement error of the LHS variable by PT status), and how to address them. It concludes with policy implications relevant for Continental Europe and its dual structure of employment protection.

How binding are legal limits? Transitions from temporary to permanent work in Spain

This paper studies the duration pattern of xed-term contracts and the determinantsof their conversion into permanent ones in Spain, where the share of xed-termemployment is the highest in Europe. We estimate a duration model for temporaryemployment, with competing risks of terminating into permanent employment versusalternative states, and exible duration dependence. We nd that conversion rates aregenerally below 10%. Our estimated conversion rates roughly increase with tenure,with a pronounced spike at the legal limit, when there is no legal way to retain theworker on a temporary contract. We argue that estimated di¤erences in conversionrates across categories of workers can stem from di¤erences in worker outside optionsand thus the power to credibly threat to quit temporary jobs.

Määräaikaisen työsopimuksen joustavat perusteet: Työelämän joustojen rajapinnoista määräaikaisen työsopimuksen kohdalla

Tutkielmassa tarkastellaan työsopimuslain mukaista määräaikaista työsopimusta erityisesti sen joustavien perusteiden näkökulmasta. Tavoitteena on ensinnäkin selvittää, onko määräaikaisen työsopimuksen avulla mahdollista toteuttaa määrällisiä joustopyrkimyksiä. Toisaalta samassa yhteydessä tarkastellaan myös määräaikaiselle työsuhteelle asetettuja tavoitteita, tutkitaan sen normiformulaatiota sekä analysoidaan tätä oikeudellista konstruktiota koskevaa oikeustilaa huomioiden samalla myös työoikeuden yleiset periaatteet ja lähtökohdat. Näkökulma suunnataan myös määräaikaisen työsopimuksen soveltamisympäristöön, jota muutostendenssi hallitsee. Lopuksi tutkielmassa tarkastellaan ns. työllistämissopimusta, jonka osalta arvioitavaksi tulevat sen merkitys, vaikutus sekä suhde perustuslakiin ja Euroopan unionin määräaikaista työsuhdetta koskevaan sääntelyyn. Tutkielmassa hyödynnetään oikeusdogmaattisen tutkimusotteen lisäksi instrumentalistista ja oikeusteoreettista ajattelutapaa sekä piirteitä lainsäädäntötutkimuksesta. Käsitys vallitsevasta oikeustilasta luodaan ensisijassa korkeimman oikeuden, työtuomioistuimen sekä Euroopan unionin tuomioistuimen ratkaisukäytäntöä analysoimalla ja tulkitsemalla. Tätä näkökulmaa täydennetään tarkastelemalla työsopimuslain määräaikaista työsuhdetta koskevaa sääntelyä instrumenttina, toisin sanoen tutkitaan määräaikaiselle työsuhteelle asetettuja tavoitteita. Tutkielmassa todetaan, että tavoitteet ohjaavat normiformulaation valintaa sekä edelleen vaikuttavat siihen, miten normia on tarkoitus tulkita. Samalla tiedonintressi ulottuu myös lain elinkaariajatteluun, jossa lakien laadinta ja siitä seuraavat vaikutukset nähdään prosessimaisena kehityskulkuna. Sosiologinen näkökulma tulee esille tavassa suhteuttaa oikeudellisen tarkastelun perusteella muodostunut käsitys määräaikaisesta työsuhteesta sovellutusympäristöönsä sekä tavassa tutkia sen ilmenemismuotoja tässä todellisuudessa. Tutkimuksen perusteella on mahdollista todeta, että kriteerit määräaikaisen työsuhteen hyödyntämiselle määrällisen jouston välineenä on asetettu korkealle. Määräaikaiseen työsuhteeseen sisältyvä joustavuus on ennemminkin joustavuutta normiformulaatiossa kuin joustavuutta soveltamistilanteissa. Tutkielmassa havaitaan, että määräaikaisen työsuhteen sallittavuuden arviointi on kuitenkin siirtymässä yksittäisistä perusteista kohti yleisluontoisempia harkintakriteereitä, jotka saavat sisältönsä erityisesti tilapäisen työvoiman tarpeen edellytyksen reunaehdoista. Tarkastelun perusteella on mahdollista todeta, että työntekijän suojelun periaate on tulkintakäytäntöä ohjaava periaate, eikä esimerkiksi reaalisille tavoiteargumenteille, ymmärrettynä ne varsinkaan työnantajan tarpeina, anneta juuri painoarvoa. Suunnattaessa katse tulevaisuuteen on nykyiseen oikeustilaan kuitenkin odotettavissa muutoksia, mikäli ns. työllistämissopimus astuu voimaan esitetyssä muodossaan. Tällöin edellytyksiä määräaikaisen työsuhteen solmimiselle väljennettäisiin merkittäväksi. Tämä vahventaa samalla käsitystä määräaikaista työsuhdetta koskevan sääntelyn instrumentalistisesta luonteesta. Keskeisinä lähteinä tutkielmassa on hyödynnetty muun muassa Markus Sädevirran väitöskirjaa A Comparative Study of the Regulation Governing the Use of Fixed-Term Contracts in three EU Member States (2013) sekä Jyrki Talan teoksia Lakien vaikutukset: Lakiuudistusten tavoitteet ja niiden toteutuminen lainsäädäntöteoreettisessa tarkastelussa (2001), Lakien laadinta ja vaikutukset (2005) sekä Kirjoituksia sääntelytarkkuudesta (2014). Oikeusteoreettisten päätelmien osalta on nojattu Raimo Siltalan teokseen Oikeustieteen tieteenteoria (2003). Tämän lisäksi määräaikaista työsuhdetta on tarkasteltu keskeisesti Kari-Pekka Tiitisen ja Tarja Krögerin teoksen Työsopimuslaki (2012) sekä Martti Kairisen, Seppo Koskisen, Ahti Laitisen, Jukka Niemelän ja Heikki Uhmavaaran teoksen Työelämän muutossuunnat (2003) kautta.

University and College Union

Unions and collective negotiation are essential in maintaining good working conditions for all staff, in particular those who are on Fixed Term Contracts (FTC) and are often starting out in their academic/research careers. The FTC group is particularly vulnerable to discrimination and the pressure to produce outputs and bring in funding to secure more secure employment. The very nature of being on a FTC greatly reduces the amount of funding sources that can be applied to.This talk provides an overview of the University and College Union (UCU), how it operates, what the benefits are, what we have achieved nationally and at a local level. Joe Viana, a FTC research er at the University, and the FTC rep of the Southampton UCU branch, will be on hand to answer questions and to provide feedback on local and national level activities.The talk should be of interest to all FTC staff, their supervisors and any postgrads considering a research career in higher education.