@TechReport{iza:izadps:dp4380,
            	author={Portugal, Pedro and Varejão, José},
            	title={Why Do Firms Use Fixed-Term Contracts?},
            	year={2009},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={4380},
            	url={https://www.iza.org/publications/dp4380},
	abstract={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.},
	keywords={fixed-term contracts;adjustment costs;labor demand},
            }