This paper studies the relationship between employee effort and employment contracts. It starts with the hypothesis that the type of employment contract could result in additional incentives for effort. Using indicators for effort (extra hours of work, salary below the minimum wage and absenteeism) taken from the Monthly Employment Survey (PME) in 2006 and 2007, it was observed that there are significant differences in profile between the workers, according to their contracts. In turn, the estimation results showed that depending on the indicator used to measure the effort of the worker, the effort expended by workers changes. Furthermore, temporary workers tend not to provide extra hours of work and are more likely to receive a salary below the minimum wage. Finally, the estimates made do not indicate a significant change in behavior among workers, when their contracts are modified.
temporary work; effort; hours worked; adverse selection
