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Fixed-Term Contracts, Incentives and Effort

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  • Pauline GIVORD

    (Crest)

  • Lionel WILNER

    (Crest)

Abstract

This paper focuses on labor market transitions and especially on those involvingfixed-term contracts. Our contribution is twofold: first, we provide an accuratemeasure of labor market transitions; second, we analyze the potential incentive effectof fixed-term contracts on "effort". To deal with unobserved heterogeneity, we use adynamic multinomial logit with fixed effects. We construct an indicator of effort forfixed-term workers, which is basically "working more than siblings". Using Frenchdata, we find that a fixed-term contract provides significantly better perspectivesthan unemployment, but no evidence of any significant impact of exerting effort onthe probability of getting an open-ended contract.

Suggested Citation

  • Pauline GIVORD & Lionel WILNER, 2009. "Fixed-Term Contracts, Incentives and Effort," Working Papers 2009-15, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2009-15
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    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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