Procrastinators and Hyperbolic Discounters : Probability of Transition from Temporary to Full-time Employment

Lee, Sun Youn; Ohtake, Fumio

Procrastinators and Hyperbolic Discounters : Probability of Transition from Temporary to Full-time Employment

Lee, Sun Youn; Ohtake, Fumio

Institute of Social and Economic Research Discussion Papers, 2012, 841

アクセス数:443件（2025-07-08 19:15 集計）

固定URL: https://hdl.handle.net/11094/23407

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タイトル	Procrastinators and Hyperbolic Discounters : Probability of Transition from Temporary to Full-time Employment
著者	NRID 1000040711924 1000040711924 著者名 Lee, Sun Youn
著者	NRID 1000050176913 1000050176913 ORCID 0000-0002-8825-7446 0000-0002-8825-7446 researchmap permalink ohtake ohtake Scopus Author ID 6701666319 6701666319 著者名 Ohtake, Fumio
キーワード等	time preferences
	temporary employment
	ATT estimation
抄録	Temporary agency work (TAW) is believed to facilitate the matching between firms and on-the-job searchers. This leads to shortening of the unemployment and job search duration. On the other hand, firms that hire temporary workers have less incentive to train them, which makes it difficult for low-skilled temporary workers to find a better job in future. Current literature has not established whether TAW employment improves the welfare of either or both the employers and employees. Therefore, this paper examines the effect of TAW employment in the Japanese labor market on employment transitions focusing on individual time preferences. Investments in one’s career involve a trade-off between immediate costs and later rewards, and thus, individual heterogeneity in time preferences may explain the behavioral patterns of labor force. We find that TAW employees have a tendency toward impatience and hyperbolic discounting. In addition, those who have held temporary job are less likely to move into full-time job positions, but no significant wage differences are observed. The strength of the negative effects on the transition probabilities declines over time but the significant effects remain over the following years. Our results indicate that TAW for employees in Japan is more likely to function as a “dead-end” rather than “stepping stone” toward stable full-time employment.
出版者	The Institute of Social and Economic Research, Osaka University
収録物名	Institute of Social and Economic Research Discussion Papers
巻(号)	841
刊行年月	2012-05
言語	英語
ハンドルURL	https://hdl.handle.net/11094/23407
関連情報 (references)	URI https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2012/DP0841.pdf
アクセス権	metadata only access
カテゴリ	ディスカッション／ワーキング・ペーパー DP/WP
カテゴリ	Institute of Social and Economic Research Discussion Papers

資源タイプ	テクニカルレポート
ローカル資源タイプ	ディスカッション／ワーキング・ペーパー
DCMI資源タイプ	text
DCTERMS.bibliographicCitation	Institute of Social and Economic Research Discussion Papers. 2012, 841
DC.title	Procrastinators and Hyperbolic Discounters : Probability of Transition from Temporary to Full-time Employment
DC.creator	Lee, Sun Youn
DC.creator	Ohtake, Fumio
DC.publisher	The Institute of Social and Economic Research, Osaka University
DC.language' scheme='DCTERMS.RFC1766	英語
DC.type' scheme='DCTERMS.DCMIType	text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2012-05
DC.relation' scheme='DCTERMS.URI	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2012/DP0841.pdf
DC.subject	time preferences
	temporary employment
	ATT estimation
DCTERMS.abstract	Temporary agency work (TAW) is believed to facilitate the matching between firms and on-the-job searchers. This leads to shortening of the unemployment and job search duration. On the other hand, firms that hire temporary workers have less incentive to train them, which makes it difficult for low-skilled temporary workers to find a better job in future. Current literature has not established whether TAW employment improves the welfare of either or both the employers and employees. Therefore, this paper examines the effect of TAW employment in the Japanese labor market on employment transitions focusing on individual time preferences. Investments in one’s career involve a trade-off between immediate costs and later rewards, and thus, individual heterogeneity in time preferences may explain the behavioral patterns of labor force. We find that TAW employees have a tendency toward impatience and hyperbolic discounting. In addition, those who have held temporary job are less likely to move into full-time job positions, but no significant wage differences are observed. The strength of the negative effects on the transition probabilities declines over time but the significant effects remain over the following years. Our results indicate that TAW for employees in Japan is more likely to function as a “dead-end” rather than “stepping stone” toward stable full-time employment.
DC.format	23407
citation_title	Procrastinators and Hyperbolic Discounters : Probability of Transition from Temporary to Full-time Employment
citation_author	Lee, Sun Youn
citation_author	Ohtake, Fumio
citation_publisher	The Institute of Social and Economic Research, Osaka University
citation_language	英語
citation_date	2012-05
citation_journal_title	Institute of Social and Economic Research Discussion Papers
citation_volume	841
citation_public_url	https://hdl.handle.net/11094/23407
citation_abstract_html_url	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2012/DP0841.pdf

Procrastinators and Hyperbolic Discounters : Probability of Transition from Temporary to Full-time Employment

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