TY - JOUR

T1 - Flexible contracts and subjective well-being

AU - Green, Colin

AU - Heywood, John

PY - 2011/7

Y1 - 2011/7

N2 - Theory suggests that when workers choose between permanent and flexible contracts, their utility should tend to equalize across contract types. New estimates of job satisfaction show the critical role played by unmeasured worker heterogeneity. They reveal that flexible contracts are a strong negative determinant of satisfaction with job security but are often a positive determinant of other dimensions of job satisfaction. As a consequence, flexible contracts have either a weak negative influence or no influence on overall job satisfaction. Moreover, flexible contracts generally have no impact on overall life satisfaction of the employed. These results appear broadly consistent with the presence of equalizing differences. (JEL J28, J41)

AB - Theory suggests that when workers choose between permanent and flexible contracts, their utility should tend to equalize across contract types. New estimates of job satisfaction show the critical role played by unmeasured worker heterogeneity. They reveal that flexible contracts are a strong negative determinant of satisfaction with job security but are often a positive determinant of other dimensions of job satisfaction. As a consequence, flexible contracts have either a weak negative influence or no influence on overall job satisfaction. Moreover, flexible contracts generally have no impact on overall life satisfaction of the employed. These results appear broadly consistent with the presence of equalizing differences. (JEL J28, J41)

U2 - 10.1111/j.1465-7295.2010.00291.x

DO - 10.1111/j.1465-7295.2010.00291.x

M3 - Journal article

VL - 49

SP - 716

EP - 729

JO - Economic Inquiry

JF - Economic Inquiry

SN - 0095-2583

IS - 3

ER -