Measuring the Utility Cost of Temporary Employment Contracts Before Adaptation: A Conjoint Analysis Approach

22 Pages Posted: 27 Sep 2010

See all articles by Konstantinos Pouliakas

Konstantinos Pouliakas

affiliation not provided to SSRN

Ioannis Theodossiou

University of Aberdeen - Business School

Abstract

This study attempts to estimate the ‘utility cost’ of temporary employment contracts purged of the psychological effects of adaptation. A conjoint analysis experiment is used that examines the ex ante contract preferences of a unique sample of low-skilled employees from seven European countries. It is shown that permanent contract holders request a significant wage premium to move to a temporary job. In contrast, temporary workers are indifferent between permanent and temporary contracts, ceteris paribus. The evidence suggests that individuals have a psychological immune system which neutralizes events that challenge their sense of wellbeing, such as job insecurity.

Suggested Citation

Pouliakas, Konstantinos and Theodossiou, Ioannis, Measuring the Utility Cost of Temporary Employment Contracts Before Adaptation: A Conjoint Analysis Approach. Economica, Vol. 77, Issue 308, pp. 688-709, October 2010, Available at SSRN: https://ssrn.com/abstract=1681687 or http://dx.doi.org/10.1111/j.1468-0335.2009.00786.x

Konstantinos Pouliakas (Contact Author)

affiliation not provided to SSRN

No Address Available

Ioannis Theodossiou

University of Aberdeen - Business School ( email )

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

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