Fixed‐Term Contracts: Short‐Term Blessings or Long‐Term Scars? Empirical Findings from the Netherlands 1980–2000

24 Pages Posted: 10 Feb 2015

See all articles by Irma Mooi‐Reci

Irma Mooi‐Reci

University of Melbourne - School of Social and Political Sciences

Ronald Dekker

ReflecT, Tilburg University; Economics of Innovation, Delft University of Technology

Date Written: March 2015

Abstract

Using a comprehensive longitudinal dataset of prime‐age Dutch workers over the period 1980–2000, we examine how a previously held job with a fixed‐term contract influences both the likelihood and the duration of a future spell of unemployment. Analyses show that Dutch workers with fixed‐term contracts experience higher risks of future unemployment and have no shorter spells of unemployment compared to workers with regular contracts. Results also reveal that swifter employment re‐entries among men with fixed‐term contracts can be explained by their job search efforts before unemployment. Our study (partly) invalidates theoretical positions that claim that fixed‐term contracts foster employment security by shortening unemployment durations; suggesting that fixed‐term contracts are a short‐term blessing that could end, for some workers, in a recurrent unemployment trap.

Suggested Citation

Mooi‐Reci, Irma and Dekker, Ronald, Fixed‐Term Contracts: Short‐Term Blessings or Long‐Term Scars? Empirical Findings from the Netherlands 1980–2000 (March 2015). British Journal of Industrial Relations, Vol. 53, Issue 1, pp. 112-135, 2015, Available at SSRN: https://ssrn.com/abstract=2562602 or http://dx.doi.org/10.1111/bjir.12024

Irma Mooi‐Reci (Contact Author)

University of Melbourne - School of Social and Political Sciences

Level 4, John Medley Building
Melbourne, VIC 3010
Australia

Ronald Dekker

ReflecT, Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

HOME PAGE: http://www.tilburguniversity.nl/reflect

Economics of Innovation, Delft University of Technology ( email )

Jaffalaan 5
2628 BX Delft
Netherlands

HOME PAGE: http://www.eci.tbm.tudelft.nl/live/pagina.jsp?id=e2b14b2c-3665-4449-8212-b557a9d29965&lang=nl

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