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| Author: | Pouliakas, K. Theodossiou, I. |
| Title: | Measuring the utility cost of temporary employment contracts before adaption: a conjoint analysis approach |
| Journal: | Economica
2010 : OCT, VOL. 77:308 p. 688-709 |
| Index terms: | psychology skills employees Europe pay |
| Language: | eng |
| Abstract: | This research paper aims to estimate the "utility cost" of temporary employment contracts purged of the psychological effects of adaption. A conjoint analysis experiment is used which explores the ex ante contract preferences of a unique sample of low-skilled employees from seven European countries. It is illustrated that permanent contract holders request a remarkable wage premium to move to a temporary job. In contrast, temporary workers are indifferent between permanent and temporary contracts, ceteris paribus. The evidence indicate that individuals have a psychological immune system that neutralizes events which challenge their sense of wellbeing, such as job insecurity. |
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