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

Hagen, Tobias

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URN: urn:nbn:de:bsz:180-madoc-4453
Document Type: Working paper
Year of publication: 2001
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C14 C35 J31 ,
Subject headings (SWD): Westdeutschland , Lohnentwicklung , Pauschalpreisvertrag , Arbeitslosigkeit
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 unrealistically large negative effects. The empirical evidence rejects compensating wage differentials as well as strong negative wage effects of FTCs.
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