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
Date Written: December 15, 2001
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: Suggested Citation