Abstract
We explore the relationship between earnings, education, and fixed-term contracts using data from the 1997 British Social Attitudes Survey. We find that the log hourly wage of workers employed under such contracts is approximately 13% lower than that of their 'permanent' counterparts, even after controlling for a plethora of personal and job characteristics. Standard decompositions indicate that the vast majority of this differential (more than 70%) is attributable to price effects, which may reflect discrimination on the part of the employer. Such findings may, therefore, suggest that employment protection is appropriate for individuals employed under fixed-term contracts.
Original language | English |
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Pages (from-to) | 492-506 |
Number of pages | 15 |
Journal | Scottish Journal of Political Economy |
Volume | 50 |
Issue number | 4 |
Publication status | Published - 2003 |