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Matching Workers to Jobs in the Fast Lane: the Operation of Fixed-term Contracts

José Varejão
Ano de Divulgação 
Código JEL 
J21 - Labor Force and Employment, Size, and Structure
In this paper we look at fixed-term contracts and examine the main features of temporary as opposed to regular employment, keeping the focus on employment careers and wage dynamics of workers employed under fixed-term contracts. Previous work found that fixed-term contracts serve as screening devices for employers. Here it is found that fixed-term contracts serve as search devices for workers, as well. Hence, they can be considered steppingstones to permanent forms of employment. However, if due to a job loss episode, a worker receives at some evolved stage of his or her career a fixed-term contract, there is an indication that both his wage and subsequent employment prospects are severely harmed.
Link para documento 
Publicado como 
What Explains the Pattern of Labour Supply in Europe? , Kluwer Academic Press, 2005