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Temporary Contracts and Monopsony Power in the UK Labour Market

Tabasso, D (2009) Temporary Contracts and Monopsony Power in the UK Labour Market. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester.


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This paper addresses the issue of the presence and the extent of equalizing differences between temporary and permanent workers. The assumption of perfect competition in the labour market is directly questioned and a simple duopsonistic model is developed with the aim of capturing the main sources of differentiation among workers. The empirical analysis, based on several waves of the UK Labour Force Data, tends to confirm several of the hypotheses suggested by the model and emphasizes how in the short run workers who have experienced a change in their job status can expect a career trajectory in line with the theory on compensating differentials. In particular, shifts from temporary to permanent contracts tend to relate to a reduction in wage and a simultaneous increase in travel-to-work distance, while the wage dynamic related to the workers shifting from a temporary contract to another temporary position appears to be directly linked to individual characteristics.

Item Type: Monograph (Working Paper)
Uncontrolled Keywords: HB;; Atypical Contracts; Oligopsony; Compensating Differentials; Commuting Time.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 28 Aug 2014 11:17
Last Modified: 15 Jan 2022 00:40

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