Are Flexible Contracts Bad for Workers? Evidence from Job Satisfaction Data

35 Pages Posted: 29 Nov 2007 Last revised: 17 Sep 2008

See all articles by Colin P. Green

Colin P. Green

Department of Economics

John S. Heywood

University of Wisconsin at Milwaukee

Date Written: June 3, 2008

Abstract

If workers can choose between permanent and flexible contracts, compensating wage differentials should arise to equalize on-the-job utility in the two types of contracts. Estimating job satisfaction using the British Household Panel Survey shows that agency and casual contracts are associated with routinely lower satisfaction. This results because the low job satisfaction associated with less job security is not offset by higher compensation or other job characteristics. Job security is sufficiently important that holding constant this one facet of satisfaction eliminates the overall gap in job satisfaction between flexible and permanent contracts.

Keywords: Flexible Contracts, Job Satisfaction, Job Security

JEL Classification: J28, J41

Suggested Citation

Green, Colin P. and Heywood, John S., Are Flexible Contracts Bad for Workers? Evidence from Job Satisfaction Data (June 3, 2008). Available at SSRN: https://ssrn.com/abstract=1033436 or http://dx.doi.org/10.2139/ssrn.1033436

Colin P. Green (Contact Author)

Department of Economics ( email )

Høgskoleringen
Trondheim NO-7491, 7491
Norway

John S. Heywood

University of Wisconsin at Milwaukee ( email )

3210 N. Maryland Avenue, Bolton Hall 802
Bolton Hall 802
Milwaukee, WI 53211
United States
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