Do Temporary Workers Receive Risk-Premiums? Assessing the Wage Effects of Fixed-Term Contracts in West-Germany by Matching Estimators Compared with Parametric Approaches

32 Pages Posted: 9 Nov 2003

See all articles by Tobias Hagen

Tobias Hagen

Frankfurt University of Applied Sciences - ReLUT - Research Lab for Urban Transport

Date Written: December 15, 2001

Abstract

The wage effects of fixed-term contracts (FTCs) are analysed with the GSOEP for West Germany. Different estimators which take into account selection bias are used. It is shown that propensity score matching estimators which are usually applied for the evaluation of active labour market programmes are well-suited for the analysis of this topic, whereas parametric approaches find unre- alistically large negative effects. The empirical evidence rejects compensating wage differentials as well as strong negative wage effects of FTCs.

Keywords: Fixed-term Employment, Wage Differentials, Propensity Score Matching

JEL Classification: C14, C35, J31

Suggested Citation

Hagen, Tobias, Do Temporary Workers Receive Risk-Premiums? Assessing the Wage Effects of Fixed-Term Contracts in West-Germany by Matching Estimators Compared with Parametric Approaches (December 15, 2001). Available at SSRN: https://ssrn.com/abstract=373342 or http://dx.doi.org/10.2139/ssrn.373342

Tobias Hagen (Contact Author)

Frankfurt University of Applied Sciences - ReLUT - Research Lab for Urban Transport

Germany

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