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Workers' Valuation of the Remaining Employment Contract Duration
Author(s) -
VAN OMMEREN JOS,
HAZANS MIHAILS
Publication year - 2008
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/j.1468-0335.2007.00599.x
Subject(s) - duration (music) , willingness to pay , valuation (finance) , wage , labour economics , marginal value , economics , labor contract , value (mathematics) , business , actuarial science , microeconomics , finance , labor relations , statistics , art , literature , mathematics
We introduce and apply a method for estimating workers' marginal willingness to pay for job attributes employing data on job search activity. Worker's willingness to pay for the remaining duration of the employment contract is derived. We provide evidence that workers attach substantial value to the remaining contract duration. A temporary worker with a remaining contract of six months is willing to pay about 10% of the monthly wage to increase the contract by one month.