IDEAS home Printed from https://ideas.repec.org/a/eme/ijmpps/ijm-03-2024-0194.html
   My bibliography  Save this article

Fixed-term contracts and firm productivity: Do workers’ skills and firm conversion rates from fixed-term to permanent contracts matter?

Author

Listed:
  • Ngoc Hân Nguyen
  • Wendy Smits
  • Mark Vancauteren

Abstract

Purpose - We aim to elucidate the relationship between fixed-term employment and firm productivity by examining workers’ skills and considering how firm-level conversion rates influence this relationship. Design/methodology/approach - We use longitudinal employer-employee data between 2011 and 2017 in the Netherlands to estimate a nonlinear regression derived from a production function proposed by Addessi (2014) and Castellaniet al. (2020). Findings - The contribution of fixed-term contracts to firm-level productivity is less than that of permanent contracts. However, this contribution is greater when firms exhibit a high conversion rate from fixed-term to permanent positions. The effect of the conversion rate is more substantial for high-skilled fixed-term workers than for low-skilled ones. Originality/value - Our results suggest the extent to which firms benefit from fixed-term contracts when these are used for screening high-skilled workers for permanent employment.

Suggested Citation

  • Ngoc Hân Nguyen & Wendy Smits & Mark Vancauteren, 2024. "Fixed-term contracts and firm productivity: Do workers’ skills and firm conversion rates from fixed-term to permanent contracts matter?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 45(10), pages 144-161, November.
    • Handle: RePEc:eme:ijmpps:ijm-03-2024-0194
    DOI: 10.1108/IJM-03-2024-0194
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJM-03-2024-0194/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJM-03-2024-0194/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://libkey.io/10.1108/IJM-03-2024-0194?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijmpps:ijm-03-2024-0194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.