If workers can choose between permanent and flexible contracts, compensating wage differentials should arise to equalize on-the-job utility in the two types of contracts. Estimating job satisfaction using the British Household Panel Survey shows that agency and casual contracts are associated with routinely lower satisfaction. This results because the low job satisfaction associated with less job security is not offset by higher compensation or other job characteristics. Job security is sufficiently important that holding constant this one facet of satisfaction eliminates the overall gap in job satisfaction between flexible and permanent contracts.
We investigate the determinants of teacher exits from and mobility within the Queensland state school system. In common with previous research we …nd that non-pecuniary factors, such as class size and location, a¤ect movement decisions but our results suggest a signi…cant role for pecuniary factors. In particular, higher wages reduce exits from the public sector, especially in the case of more experienced female teachers.Locality allowances paid to teachers in rural and remote schools, where non-pecuniary factors are less attractive, appear to have some success in attracting and retaining sta¤ in these locations.
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