6533b873fe1ef96bd12d55ac

RESEARCH PRODUCT

The Workers' Value of the Remaining Employment Contract Duration

Mihails HazansMihails HazansJos Van Ommeren

subject

Labour economicsWillingness to paymedia_common.quotation_subjectValue (economics)WageBusinessDuration (project management)Contract durationEmployment contractmedia_common

description

This paper introduces and applies a method for estimating workers' marginal willingness to pay for job attributes employing data on job search activity. Workers' 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.

https://doi.org/10.2139/ssrn.748906