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Asymmetric Labor Market Reforms

Effects on Wage Growth and Conversion Probability of Fixed-Term Contracts

Bibliographic Data

ID3345722
AuthorsMarta Silva (0000-0001-5133-3284, corresponding author), Luís Filipe Martins (0000-0002-0941-6294), Helena Lopes (0000-0003-1710-778X, Iscte – Instituto Universitário de Lisboa)
Year2018
Volume71
Issue3
Pages760-788
Publication date2018-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0019793917737506
OpenAlexW2765415682
LanguageEN
Citations received3
References cited35

The authors investigate the impact of a change in employment protection laws in Portugal that increased the maximum legal duration of fixed-term contracts. They find that this reform led to a reduction in the probability that a worker on a fixed-term contract would be converted to a permanent contract. In addition, those workers who had their contracts converted experienced a significantly higher hourly wage growth at the time of conversion and faced a lower reduction in wage growth during the years in which the changed legislation was in force. Consequently, the implementation of this law led to a 27% increase in the wage-growth differential between the two contracts. The findings are based on an endogenous regime-switching model using rich administrative linked employer-employee data

Differential (mechanical device) · Duration (music) · Economics · Efficiency wage · Labour economics · Legislation · Term (time) · Wage · Wage growth · Employment and Welfare Studies · Labor market dynamics and wage inequality · Labor Movements and Unions · Law

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Unique citing works3
Citations per year0,6
Citation span2021 - 2025 (5)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 3

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