Fixed-term employment contracts: No negative wage effects in the transition to temporary employment
Abstract
"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." (Author's abstract, IAB-Doku) ((en))
Cite article
Hohendanner, C. & Latner, J. (2025): Fixed-term employment contracts: No negative wage effects in the transition to temporary employment. (IAB-Kurzbericht 13/2025 (en)), Nürnberg, 8 p. DOI:10.48720/IAB.KB.2513.en
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- Both types of contracts have a similar effect when starting a job
- Development of fixed-term employment and fixed-term hiring in Germany
- Transition into permant contract, extensions of fixed-term contracts and staff departures from fixed-term contracts
- Estimated wage effects for transitions between different contract types and employment statuses
- Estimated wage effects of different transitions over four years after the transition