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Five stacks of coins are arranged in a stepped pattern on a wooden table, with blurred foliage in the background. On each stack of coins sits a wooden die with a smiling smiley symbol. A hand places another die on the last and highest stack.

No negative wage effects when transitioning to fixed-term employment

Fixed-term contracts do not necessarily have to be disadvantageous, but they are not preferable from the employees' point of view.

Compared to permanent employment contracts, fixed-term contracts are less attractive. However, a recent IAB study shows that fixed-term contracts are not necessarily disadvantageous, even if permanent contracts are preferable from the employees’ point of view. The decisive factors are less related to the contract type and more related to an individual’s career and professional development. Particularly in economically uncertain times, it is worth taking another look at the various forms of employment. Neither the transition from fixed-term to permanent employment nor vice versa leads to wage reductions. In addition, both types of contracts offer the unemployed similar opportunities for integration.