6533b821fe1ef96bd127ac65

RESEARCH PRODUCT

Workers' Valuation of the Remaining Employment Contract Duration

Mihails HazansJos Van Ommeren

subject

Economics and EconometricsLabour economicsWillingness to paymedia_common.quotation_subjectValue (economics)WageEconomicsDuration (project management)Contract durationmedia_commonEmployment contract

description

This paper introduces and applies a method for estimating workers' marginal willingness to pay for job attributes employing data on job search activity. Worker's willingness to pay for the remaining duration of the employment contract is derived. We provide evidence that workers attach substantial value to the remaining contract duration. A temporary worker with a remaining contract of 6 months is willing to pay about 10% of the wage to increase the contract by one month.

yearjournalcountryeditionlanguage
2007-09-24Economica
https://doi.org/10.1111/j.1468-0335.2007.00599.x