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The use of fixed-term contracts and the (adverse) selection of public sector workers

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  • Lucia Rizzica

    (Bank of Italy)

Abstract

The paper seeks to investigate the relationship between job (in)security in the public sector and workers� self-selection between the private and public sector. Using data from the Italian Labour Force Survey for the years 2005-13, I show that a higher incidence of fixed-term contracts in the public sector has significant adverse selection effects in that it lowers the likelihood of workers of higher ability entering the public sector. Moreover, at least in some areas of the country, a lower relative probability of obtaining an open-ended position in the public sector decreases the likelihood that higher-ability, fixed-term workers remain in the public sector.

Suggested Citation

  • Lucia Rizzica, 2015. "The use of fixed-term contracts and the (adverse) selection of public sector workers," Temi di discussione (Economic working papers) 1041, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1041_15
    as

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    File URL: http://www.bancaditalia.it/pubblicazioni/temi-discussione/2015/2015-1041/en_tema_1041.pdf
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    References listed on IDEAS

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    Cited by:

    1. Lucia Rizzica, 2020. "The Italian public sector workforce: recent evolution in the light of the rules on turnover," Questioni di Economia e Finanza (Occasional Papers) 560, Bank of Italy, Economic Research and International Relations Area.
    2. Lucia Rizzica, 2016. "Why go public? A study of the individual determinants of public sector employment choice," Questioni di Economia e Finanza (Occasional Papers) 343, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    Public service delivery; incentives; selection; public sector personnel; occupational choices;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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