Are Temporary Workers Discriminated Against? Evidence from Europe

We analyse the wage gap between temporary and permanent jobs in nine European countries using a semiparametric approach and evaluate the wage gap across the entire wage distribution. We show that in some countries the fixed-term wage gap decreases as higher quantiles are considered, and that having a fixed-term contract penalizes more workers located at the bottom of the earnings distribution. We find also that workers with the same characteristics as temporary workers would receive higher wages if they worked on permanent contracts in almost all the countries considered, and that this finding is stable across the entire wage distribution.