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Does Fixed-term Contract Employment Raise Firms’ Adjustment Speed?. Evidence from an Establishment Panel for West Germany / Erhöhen befristete Verträge die Anpassungsgeschwindigkeit von Unternehmen?. Empirische Evidenz auf Basis eines Betriebspanels

Author

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  • Hagen Tobias

    (Centre for European Economic Research (Zentrum für Europäische Wirtschaftsforschung - ZEW), Department of Labour Economics, Human Resources, and Social Policy, P.O. Box 10 3443, D-68034 Mannheim)

Abstract

Fixed-term labour contracts were liberalised in Germany in order to raise the flexibility of the labour market. However, empirical studies using industry-level data find no significant effect of FTCs on employment adjustment. This paper investigates the impact of FTC employment on firms’ flexibility by estimating dynamic labour demand models with the IAB-Establishment Panel for West Germany in 1996-2000. Using a GMM estimator and comparing the estimated adjustment of total employment to the adjustment of permanent contract employment some evidence is found that FTCs raise firms’ adjustment speed.

Suggested Citation

  • Hagen Tobias, 2003. "Does Fixed-term Contract Employment Raise Firms’ Adjustment Speed?. Evidence from an Establishment Panel for West Germany / Erhöhen befristete Verträge die Anpassungsgeschwindigkeit von Unternehmen?. ," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(4), pages 403-421, August.
    • Handle: RePEc:jns:jbstat:v:223:y:2003:i:4:p:403-421
    DOI: 10.1515/jbnst-2003-0403
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    References listed on IDEAS

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