Why do firms use fixed-term contracts?

• Type: Article in International Scientific Journal
• Date: 2022

Authors

Portugal, P (Author) Other; José Varejão (Author) FEP

Journal

Title: Portuguese Economic Journal

Vol. 21 No. 3

Pages: 401-421

ISSN: 1617-982X

Publisher: Springer Nature

Indexing

ISI Web of Knowledge - 4 Citations

Scopus - 401 Citations

Other information

Authenticus ID: P-00X-0H7

DOI: 10.1007/s10258-022-00215-0

Abstract (EN): In this article we look at how one specific form of temporary employment - employment with fixed-term contracts - fits into employers' hiring policies. We find that human capital variables, measured at the levels of the worker and the workplace, are important determinants of the employers' decisions to hire with temporary contracts and to promote temporary workers to permanent positions. Those employers that hire more with temporary contracts are also those that are more likely to offer a permanent position to their newly-hired temporary employees. Our results indicate that fixed-term contracts are a mechanism for screening workers for permanent positions.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 21