Português
Ciência-IUL
Publications
Publication Detailed Description
Asymmetric labor market reforms: effects on wage growth and conversion probability of fixed-term contracts
Journal Title
Industrial and Labor Relations Review
Year (definitive publication)
2018
Language
English
Country
United States of America
More Information
Web of Science®
Scopus
Google Scholar
Abstract
The authors investigate the impact of a change in employment protection laws in Portugal that increased the maximum legal duration of fixed-term contracts. They find that this reform led to a reduction in the probability that a worker on a fixed-term contract would be converted to a permanent contract. In addition, those workers who had their contracts converted experienced a significantly higher hourly wage growth at the time of conversion and faced a lower reduction in wage growth during the years in which the changed legislation was in force. Consequently, the implementation of this law led to a 27% increase in the wage-growth differential between the two contracts. The findings are based on an endogenous regime-switching model using rich administrative linked employer–employee data.
Acknowledgements
--
Keywords
Employment protection legislation,Fixed-term contract,Endogenous regime-switching model
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
Funding Records
| Funding Reference | Funding Entity |
|---|---|
| SFRH/BD/85924/2012 | Fundação para a Ciência e a Tecnologia |
Contributions to the Sustainable Development Goals of the United Nations
With the objective to increase the research activity directed towards the achievement of the United Nations 2030 Sustainable Development Goals, the possibility of associating scientific publications with the Sustainable Development Goals is now available in Ciência-IUL. These are the Sustainable Development Goals identified by the author(s) for this publication. For more detailed information on the Sustainable Development Goals, click here.
