Precarious Employment and Bargaining Power: Results of a Factorial Survey Analysis

Abstract

SummaryThis article deals with the role of bargaining power in shaping workers’ willingness to accept fixed-term jobs. It is assumed that workers prefer permanent contracts but may be willing to compromise on job security under certain conditions. To what extent is the willingness to accept fixed-term contracts influenced by personal characteristics and contextual factors that shape individuals’ bargaining power vis-à-vis employers? In a factorial survey implemented within the German panel study “Labour Market and Social Security” (PASS) approx. 3,700 respondents evaluated more than 18,000 short descriptions (vignettes) of hypothetical job offers with an experimental variation of job characteristics, including contract type. Results show that better labor market integration and economic resources of the respondents reduce the willingness to accept insecure jobs. The effect of a better bargaining position also shows up in the higher level of financial compensation required for fixed-term contracts.Moreover, some variation by family background and gender has been found.