English, Article, Journal or magazine article edition: Why Do Firms Use Fixed-Term Contracts? José Varejão; Pedro Portugal

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Bookmark: http://trove.nla.gov.au/version/182232
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Why Do Firms Use Fixed-Term Contracts?
Author
  • José Varejão
  • Pedro Portugal
Physical Description
  • preprint
Notes
  • This paper investigates the reasons why firms use fixed-term contracts.Two distinctive features of these contracts - reduced firing costs and the prohibition of contract rollover - are highlighted. Firms' decision related to temporary contracts - the choice of the contract on offer and contract conversion - are modeled within standard adjustment costs and matching settings. Regression analysis is performed on the stock of fixed-term contracts and the flows of temporary workers to permanent positions. Results from a beta-binomial regression model indicate that screening workers for permanent positions is the single most important reason why firms use this type of contract.
  • Fixed-Term Contracts, Adjustment Costs, Temporary Employment
  • RePEc:por:cetedp:0310
Language
  • English
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