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What hides behind the fixed-term contracts wage gap?

dc.contributor.advisorPortugal, Pedro
dc.contributor.authorSilvério, Filipe José Brás
dc.date.accessioned2015-06-09T10:46:37Z
dc.date.available2015-06-09T10:46:37Z
dc.date.issued2015-01
dc.descriptionA Work Project, presented as part of the requirements for the Award of a Master’s Degree in Economics from the Nova – School of Business and Economicsen
dc.description.abstractIn Portugal, about 20% of full-time workers are employed under a fixed-term contract. Using a rich longitudinal matched employer-employee dataset for Portugal, with more than 20 million observations and covering the 2002-2012 period, we confirm the common idea that fixed-term contracts are not desirable when compared to permanent ones, by estimating a conditional wage gap of -1.7 log points. Then, we evaluate the sources of that wage penalty by combining a three way high-dimensional fixed effects model with the decomposition of Gelbach (2014), in which the three dimensions considered are the worker’s unobserved ability, the firm’s compensation wage policy and the job title effect. It is shown that the average worker with a fixed-term contract is less productive than his/her permanent counterparts, explaining -3.92 log points of the FTC wage penalty. Additionally, the sorting of workers into lower-paid job titles is also responsible for -0.59 log points of the wage gap. Surprisingly, we found that the allocation of workers among firms mitigates the existing wage penalty (in 4.23 log points), as fixed-term workers are concentrated into firms with a more generous compensation policy. Finally, following Figueiredo et al. (2014), we further control for the worker-firm match characteristics and reach the conclusion that fixed-term employment relationships have an overrepresentation of low quality worker-firm matches, explaining 0.65 log points of the FTC wage penalty.por
dc.description.sponsorshipNSBE - UNLpor
dc.identifier.tid201475936
dc.identifier.urihttp://hdl.handle.net/10362/15106
dc.language.isoengpor
dc.titleWhat hides behind the fixed-term contracts wage gap?por
dc.typemaster thesis
dspace.entity.typePublication
rcaap.rightsopenAccesspor
rcaap.typemasterThesispor
thesis.degree.disciplineLabor economicspor
thesis.degree.levelMasterspor
thesis.degree.nameA Work Project presented as part of the requirements for the Award of a Master Degree in Economics from the NOVA – School of Business and Economicspor

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