%0 Report
        %A Portugal, Pedro
%A Varejão, José
        %T Why Do Firms Use Fixed-Term Contracts?
        %D 2009
        %8 2009 Aug
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4380
        %U https://www.iza.org/index.php/publications/dp4380
        %X Temporary forms of employment account for a variable but never trivial share of total employment in both the U.S. and in Europe. In this article we look at how one specific form of temporary employment ? employment with fixed-term contracts ? fits into employers' hiring policies. We find that human capital variables (schooling, skills and employer-provided training) as measured at the levels of the worker and the workplace are important determinants of the employers’ decisions to hire with fixed-term contracts and to promote temporary workers to permanent positions. Those employers that hire more with fixed-term contracts are also those that are more likely to offer a permanent position to their newly-hired temporary employees. Our results indicate that fixed-term contracts are used as mechanisms for screening workers for permanent positions.
        %K fixed-term contracts
%K adjustment costs
%K labor demand