Abstract
In this paper, we use comprehensive employer-employee data for the Netherlands to investigate the labor income effects of flexible labor contracts in two different settings: wage determination as in the AKM model, and an analysis of earnings losses after job displacement. In both settings, we find that flexible contracts lead to lower wages, but that workers with flexible contracts primarily earn less because they work at or join lower paying firms. This implies that the negative effects of flexible contracts on wage income are overstated, if firm-specific pay differentials are not taken into account.
| Original language | English |
|---|---|
| Place of Publication | Tilburg |
| Publisher | CentER, Center for Economic Research |
| Number of pages | 22 |
| Volume | 2024-010 |
| Publication status | Published - 9 Apr 2024 |
Publication series
| Name | CentER Discussion Paper |
|---|---|
| Volume | 2024-010 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 1 No Poverty -
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities
Keywords
- job discplacement
- flexible contracts
- alternative work arrangements
- earning losses
- firm-specific wage premiums
- income disparities
- labor market
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