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| The Impact of Changes in the Term of Labor Contracts on the Workers: Evidence from the Unique Panel of CHIP 2007-2008 |
| FANG Ying1, 2, 3, 4, LAN Jia-jun1 |
1. Yanan Institute of Economics, Xiamen University;
2. Department of Statistics, School of Economics, Xiamen University;
3. Key Laboratory of Econometrics of Ministry of Education;
4. Key Laboratory of Statistics of Fujian Province, Fujian, Xiamen, 361005 |
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Abstract Using the urban sample of the unique panel data of CHIP 2007-2008, this paper investigates the causal impact of changes of labor contracts on workers’ earnings, working hours, likelihood of looking for a new job and their emotional well-being. The findings show that there is significant decline in working hours and likelihood of seeking a new job, and remarkable increase in emotional well-being among workers whose contracts have changed to open-ended contracts than those whose contract terms do not change, and that the change of contracts do not have significant impact on their earnings. Change from no contracts or short-term contracts to long-term contracts greatly increases workers’ emotional well-being, but has no significant impact on their earnings, working hours, and the likelihood to look for a new job. However, there is remarkable decline in earnings and happiness, and higher likelihood of looking for a new job among those who lose open-ended contracts, but this change do not have significant impact on working hours. Loss of long-term contracts makes workers more likely to look for a new job, but has no obvious impact on their earnings, working hours and emotional well-being. Worker without contracts or short-term contracts see no significant difference in their earnings, working hours and emotional well-being. The findings provide a new perspective for the impact of Labor Contract Law.
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Received: 28 September 2017
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2017, Vol. 34 
