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

• In Event: 085 - Section on Organizations, Occupation and Work Paper Session. Changes in Employment Relations and Their Consequences

Abstract

This articles 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, under certain conditions, are willing to concede on job security. The study seeks to answer one main question: 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 in Germany about 3,700 respondents evaluated more than 18,000 descriptions (vignettes) of hypothetical job offers with an experimental variation of job characteristics, including contract type. Results show that a better labor market integration and economic resources reduce the willingness to accept insecure jobs. The decommodifying effect of characteristics defining a better bargaining position also manifests in a higher level of financial compensation required for fixed term contracts. In addition, some variation by family background and gender is found.

Authors

• Katrin Auspurg, University of Konstanz

• Stefanie Gundert, Institute for Employment Research