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Flexibilization without hesitation? Temporary contracts and job satisfaction

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  • Adrian Chadi
  • Clemens Hetschko

Abstract

We use German panel data to examine how fixed-term employment affects utility derived from working. In contrast to previous research, we present evidence that working on a temporary contract lowers current job satisfaction. We discover that the honeymoon effect of a new job must be considered to reveal this result. Job insecurity appears to be the source of dissatisfaction associated with fixed-term employment. We also consider regional unemployment and perceived employment security to shed light on the basic notion of flexicurity policies. Finally, we apply a life course perspective on employment careers to discuss the overall role of temporary employment for individual job satisfaction.

Suggested Citation

  • Adrian Chadi & Clemens Hetschko, 2016. "Flexibilization without hesitation? Temporary contracts and job satisfaction," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 217-237.
    • Handle: RePEc:oup:oxecpp:v:68:y:2016:i:1:p:217-237.
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    File URL: http://hdl.handle.net/10.1093/oep/gpv053
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    Citations

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    Cited by:

    1. Diris, Ron & Van Vliet, Olaf, 2022. "The Relation between Skills and Job Security: Identifying the Contractual Return to Skills," IZA Discussion Papers 15513, Institute of Labor Economics (IZA).
    2. Inga Laß & Irma Mooi-Reci & Mark Wooden & Martin Bujard, 2024. "Temporary employment and first births: A path analysis of the underlying mechanisms using Australian and German panel data," Melbourne Institute Working Paper Series wp2024n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Piper, Alan, 2021. "Temps dip deeper: Temporary employment and the midlife nadir in human well-being," The Journal of the Economics of Ageing, Elsevier, vol. 19(C).
    4. Adrian Chadi & Clemens Hetschko, 2018. "The magic of the new: How job changes affect job satisfaction," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 23-39, March.
    5. Ronnie Schöb, 2021. "Labor market policies, unemployment, and identity," IZA World of Labor, Institute of Labor Economics (IZA), pages 270-270, November.
    6. Adrian Chadi & Clemens Hetschko, 2021. "How Job Changes Affect People's Lives — Evidence from Subjective Well‐Being Data," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 279-306, June.
    7. Petilliot, René, 2016. "How important is the type of working contract for job satisfaction of agency workers?," FZG Discussion Papers 61, University of Freiburg, Research Center for Generational Contracts (FZG).
    8. Adrian Chadi & Laszlo Goerke, 2023. "Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership," Economica, London School of Economics and Political Science, vol. 90(359), pages 1041-1088, July.
    9. Hetschko, Clemens & Knabe, Andreas & Schöb, Ronnie, 2021. "Happiness, Work, and Identity," GLO Discussion Paper Series 783, Global Labor Organization (GLO).
    10. Ahmed Lahsen, Amina & Piper, Alan T. & Thiele, Ida-Anna, 2020. "Kim Jiyoung, born 1982, and the labour market: Overeducation, gender, income and life satisfaction. Panel evidence from Korea," Discussion Papers 2020/10, Free University Berlin, School of Business & Economics.
    11. René Petilliot, 2016. "How Important is the Type of Working Contract for Job Satisfaction of Agency Workers?," SOEPpapers on Multidisciplinary Panel Data Research 832, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Pollio, Chiara & Landini, Fabio & Prodi, Elena & Arrighetti, Alessandro, 2023. "Does Temporary Employment undermine the Quality of Permanent Jobs?," GLO Discussion Paper Series 1273, Global Labor Organization (GLO).
    13. Diriwaechter, Patric & Shvartsman, Elena, 2018. "The anticipation and adaptation effects of intra- and interpersonal wage changes on job satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 116-140.
    14. Henna Busk & Christine Dauth & Elke J. Jahn, 2017. "Do Changes in Regulation Affect Temporary Agency Workers’ Job Satisfaction?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(3), pages 514-544, July.
    15. Leandro Iván Canzio & Felix Bühlmann & Jonas Masdonati, 2023. "Job satisfaction across Europe: An analysis of the heterogeneous temporary workforce in 27 countries," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 728-754, August.
    16. Hetschko, Clemens & Schöb, Ronnie & Wolf, Tobias, 2020. "Income support, employment transitions and well-being," Labour Economics, Elsevier, vol. 66(C).
    17. Aleksynska, Mariya, 2018. "Temporary employment, work quality, and job satisfaction," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 722-735.
    18. René Petilliot, 2018. "How important is the type of working contract for job satisfaction of agency workers?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(3), pages 359-379, September.

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