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The hidden costs of fixed term contracts: the impact on work accidents

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  • Guadalupe, Maria

Abstract

This paper assesses whether there is a systematic difference between the accident rates of fixed term and permanent contract workers that is not just the result of a compositional effect. A pure contractual effect might exist because the short duration of the temporary contract reduces the incentives to invest in specific human capital leading to a higher accident rate. I provide two identification strategies to control for selection and reporting biases. The results confirm there is a pure contractual effect that increases the accident probability by 4 percent to 7 percent.

Suggested Citation

  • Guadalupe, Maria, 2002. "The hidden costs of fixed term contracts: the impact on work accidents," LSE Research Online Documents on Economics 20064, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:20064
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    References listed on IDEAS

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    1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    2. Olivier Blanchard & Augustin Landier, 2001. "The Perverse Effects of Partial Labor Market Reform: Fixed Duration Contracts in France," NBER Working Papers 8219, National Bureau of Economic Research, Inc.
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    4. Catalina Amuedo-Dorantes, 2002. "Work Safety in the Context of Temporary Employment: The Spanish Experience," ILR Review, Cornell University, ILR School, vol. 55(2), pages 262-285, January.
    5. Juan F. Jimeno & Luis Toharia, 1993. "The effects of fixed-term employment on wages: theory and evidence from Spain," Investigaciones Economicas, Fundación SEPI, vol. 17(3), pages 475-494, September.
    6. Fortin, Bernard & Lanoie, Paul & Laporte, Christine, 1999. "Is Workers' Compensation a Substitute for Unemployment Insurance?," Journal of Risk and Uncertainty, Springer, vol. 18(2), pages 165-188, August.
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    More about this item

    Keywords

    work accidents; fixed-term contracts; productivity;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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