The hidden cost of fixed term contracts: The impact on work accidents

IZA Logo

IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 19.11.2002, 12:15 - 13:30


Presentation by 

Maria Guadalupe (INSEAD)


This paper assesses whether there is a systematic difference between the accident rates fixed-term and permanent contract workers that is not just the result of a compositional effect. A pure contractual effect leading to a higher accident rate might exist because the short duration of the temporary contract reduces the incentives to invest in specific human capital or because effort is higher to increase rehiring probabilities. I provide two identification strategies to control for selection and reporting biases. The results confirm there is a pure contractual effect that increases the accident probability by 5 percentage points.

For more information, please contact