Fixed-term contract jobs

Fixed-term contracts have become a common tool for employers to screen new employees. There has been widespread debate about the use of this type of contract. However, previous research established that fixed-term contracts can serve as a stepping stone into permanent employment. Consequently, fixed-term employees have the incentive to exert more effort than permanent employees. Using overtime hours and absenteeism as effort measures taken from the Dutch LISS panel, we present evidence that female fixed-term employees indeed work more overtime hours. Moreover, we show that female fixed-term employees have lower job satisfaction. There is no evidence in our sample for such effects for male fixed-term employees.