Measuring Adaptation to Non-Permanent Employment Contracts Using a Conjoint Analysis Approach

University of Aberdeen Business School Working Paper No. 2007-04

Posted: 10 Jan 2008

See all articles by Konstantinos Pouliakas

Konstantinos Pouliakas

University of Aberdeen - Business School; Cedefop; IZA Institute of Labor Economics

Ioannis Theodossiou

University of Aberdeen - Business School

Date Written: January 2007

Abstract

This study attempts to uncover the 'real' impact of temporary contracts on workers' perceived job quality, prior to the psychological phenomena of adaptation, coping and cognitive dissonance coming into play. This is done by using a novel conjoint analysis approach that examines the ex ante preferences over different contract statuses of a newly generated sample of low-skilled employees from seven European countries. Other things equal, it is shown that the anticipated psychological 'costs' of moving from a riskless permanent contract to the insecurity of a temporary job or no work at all appear to be quite significant. In contrast, temporary employees, who have presumably already adapted to the circumstances surrounding a non-permanent contract, are found to be statistically indifferent between permanent and temporary employment, and request much smaller wage premiums in order to switch from one status to the other. The well-documented distress associated with joblessness is also confirmed in our data. The methodology developed here can provide policymakers with an alternative and relatively inexpensive method of quantifying the immediate impact of any shift in their employment policies.

Keywords: Adaptation, ex ante preferences, job evaluation

JEL Classification: C25, J24, J22

Suggested Citation

Pouliakas, Konstantinos and Pouliakas, Konstantinos and Theodossiou, Ioannis, Measuring Adaptation to Non-Permanent Employment Contracts Using a Conjoint Analysis Approach (January 2007). University of Aberdeen Business School Working Paper No. 2007-04, Available at SSRN: https://ssrn.com/abstract=1082212

Konstantinos Pouliakas (Contact Author)

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

Cedefop ( email )

PO Box 22427
Finikas (Thessaloniki), 55102
Greece

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Ioannis Theodossiou

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

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