TY  - RPRT
        AU  - Portugal, Pedro
AU  - Varejão, José
        TI  - Why Do Firms Use Fixed-Term Contracts?
        PY  - 2009/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4380
        UR  - https://www.iza.org/publications/dp4380
        AB  - 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.
        KW  - fixed-term contracts
KW  - adjustment costs
KW  - labor demand
        ER  -