The widespread presence and effects of temporary jobs

Temporary contracts are a key dimension of many (but not all) labour markets. In this chapter, we provide a brief overview of the large theoretical and empirical literature about these types of contracts. First, we argue that temporary contracts are driven by labour demand, institutional, and bargaining factors. Second, we present findings across worker, firm, and institutional outcome dimensions. In some of these areas, the literature does not yet provide consistent findings. We also make several suggestions for further research, including evaluating the impact of temporary contracts designs, unemployment insurance experience rating schemes, and labour market power. More detailed data sources may be required in some cases.