Flexible Contracts and Human Capital Investments |
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Authors: | Didier Fouarge Andries de Grip Wendy Smits Robert de Vries |
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Institution: | 1.Research Centre for Education and Labour Market (ROA),Maastricht University,Maastricht,The Netherlands;2.Statistics Netherlands,Heerlen,The Netherlands |
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Abstract: | As suggested by human capital theory, workers with flexible contracts participate less often in training than those with permanent
contracts. We find that this is merely due to the fact that flexworkers receive less employer-funded training, a gap they
can only partly compensate for by their own training investments. Flexworkers particularly participate less in firm-specific
training that is meant to keep up with new skill demands than workers with permanent contracts. However, for those who participate
in employer-funded firm-specific training, a temporary contract appears to facilitate the transition to a permanent contract
with the same employer. However, this does not hold for participation in self-paid training. This training, which is usually
general training, does not help in finding a better job. |
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