Flexibilization without hesitation? Temporary contracts and job satisfaction

Abstract

We use German panel data to examine how fixed-term employment affects utility derived from working. In contrast to previous research, we present evidence that working on a temporary contract lowers current job satisfaction. We discover that the honeymoon effect of a new job must be considered to reveal this result. Job insecurity appears to be the source of dissatisfaction associated with fixed-term employment. We also consider regional unemployment and perceived employment security to shed light on the basic notion of flexicurity policies. Finally, we apply a life course perspective on employment careers to discuss the overall role of temporary employment for individual job satisfaction.