Skip to main content
Article thumbnail
Location of Repository

Measuring adaptation to non-permanent employment contracts using a conjoint analysis approach

By Kostas Pouliakas and Ioannis Theodossiou


This study attempts to uncover the ‘real’ impact of temporary contracts on workers’ perceived job quality, prior to the psychological phenomena of adaptation, coping and cognitive dissonance coming into play. This is done by using a novel conjoint analysis approach that examines the ex ante preferences over different contract statuses of a newly generated sample of low-skilled employees from seven European countries. Other things equal, it is shown that the anticipated psychological ‘costs’ of moving from a riskless permanent contract to the insecurity of a temporary job or no work at all appear to be quite significant. In contrast, temporary employees, who have presumably already adapted to the circumstances surrounding a non-permanent contract, are found to be statistically indifferent between permanent and temporary employment, and request much smaller wage premiums in order to switch from one status to the other. The well-documented distress associated with joblessness is also confirmed in our data. The methodology developed here can provide policymakers with an alternative and relatively inexpensive method of quantifying the immediate impact of any shift in their employment policies.European Commissio

Topics: Adaptation, ex ante preferences, job evaluation
Year: 2007
OAI identifier:

Suggested articles


  1. (1966). A new approach to consumer theory’, doi
  2. (1995). A short history of labour turnover, job tenure, and job security, 1975-93’, doi
  3. (1957). A theory of cognitive dissonance, doi
  4. (1947). Adaptation level as frame of reference for prediction of psychological data’, doi
  5. (2004). Analysis of Job Satisfaction’,
  6. (1978). Conjoint Analysis in Consumer Research: Issues and Outlook’, doi
  7. (1971). Consumer demand: a new approach, doi
  8. (2002). Econometric Analysis of Cross-Section and Panel Data, doi
  9. (1977). Economic aspects of job satisfaction’. doi
  10. (1984). Essays in labour market analysis,
  11. (2004). Happiness Quantified, doi
  12. (1999). Hedonic Adaptation’. In:
  13. (1974). Hedonic prices and implicit markets: product differentiation in pure competition’, doi
  14. (1971). Hedonic relativism and planning the good society’.
  15. (2004). How important is methodology for the estimates of the determinants of happiness?’, doi
  16. (2006). Image and Reality: the Case of Job Satisfaction’, Unpublished Mimeo. doi
  17. (1997). Job satisfaction and gender: Why are women so happy at work?’, doi
  18. (1997). Job satisfaction and target earnings’, doi
  19. (1978). Job satisfaction as an economic variable’, doi
  20. (2000). Job satisfaction, comparison earnings and gender’, doi
  21. (1993). Job satisfaction, Salaries and Unions: the determination of doi
  22. (1979). Job satisfaction, wages and unions’, doi
  23. (2002). Job satisfaction: A Comparison of Standard, Non Standard, and Self-Employment Patterns across Europe with a Special note to the Gender/Job satisfaction paradox’, EPAG working paper,
  24. (2004). Joblessness and Par-time Employment: Is it a
  25. (2004). Joblessness and Par-time Employment: Is it a Matter of Workers’ Choice?’, University of Aberdeen working paper. 45
  26. (1982). Labour contracts as partial gift exchange’, doi
  27. (2004). Labour market transitions and advancement: temporary employment and low-pay
  28. (2004). Labour market transitions and advancement: temporary employment and low-pay in Europe”, Employment in Europe, Recent Trends and Prospects,
  29. (1983). Limited-dependent and qualitative variables in econometrics, doi
  30. (1996). Mind the gap, please? The changing nature of entry jobs in Britain’, doi
  31. (1983). On least squares estimation when the dependent variable is grouped’, doi
  32. Report on Individual Stated Job Preferences: a Conjoint Analysis Approach’, Final Report for the Workpackage Novel.
  33. (1979). Sample Selection Bias as a Specification Error’, doi
  34. (1996). Satisfaction and Comparison Income’, doi
  35. (1997). Shopping at the labour market: A real tale of fiction’, doi
  36. (1964). Simultaneous conjoint measurement: A new type of fundamental measurement’, doi
  37. (2005). Some are Punished and Some are Rewarded: A Study of the Different Impact of Performance Pay on Job Satisfaction”, doi
  38. (2000). Stated Choice Methods: Analysis and Application, doi
  39. (2002). Temporary Jobs: Stepping Stones or Dead Ends?’, doi
  40. (2002). The costs and benefits of lifelong learning: doi
  41. (2002). The costs and benefits of lifelong learning: The case of the Netherlands’, doi
  42. (1998). The dark side of flexibility’,
  43. (1998). The Effects of Low Pay and Unemployment on Psychological Well-Being: A Logistic Regression Approach’, doi
  44. (1994). Unhappiness and unemployment’, doi
  45. (1978). Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables’, doi
  46. (1964). vi The first studies on conjoint-analysis came from the field of marketing research
  47. (1984). Welfare evaluations in contingent valuation experiments with discrete responses: reply’, doi
  48. (1969). What is job satisfaction?’, doi
  49. (1998). Why are the unemployed so unhappy? Evidence from panel data’, doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.