Abstract

ABADIA ALVARADO, Luz Karime. The effects of fixed-term contracts on workers in Colombia. Cuad. Econ. [online]. 2014, vol.33, n.63, pp.421-446. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v33n63.45340.

This paper studies the effects of fixed-term contracts on workers. Specifically, the paper analyzes their impact on wages and on satisfaction levels. Regulations governing fixed-term and indefinite contracts in Colombia and the main labor reforms related to these two types of contract are analyzed. Women, young and low-educated workers, who work in small firms, in the private sector and in construction or manufacturing are most likely to have fixed-term contracts. In terms of wages, we found a significant raw and adjusted wage gap against workers with fixed-term contracts. Finally, we found, as expected, evidence that fixed-term contracts reduce the level of worker satisfaction.

Keywords : Types of contracts; labor contracts; fixed-term and indefinite contract; wage gap; instrumental variable.

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