Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302230 
Year of Publication: 
2024
Series/Report no.: 
ISER Discussion Paper No. 1235
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
Firms commonly use probation to evaluate new hires before making long-term commitments. Workers accepting jobs with a high initial risk of dismissal may expect compensation for this risk. Utilizing an original dataset of Japanese online job ads, this study employs propensity score matching and regression analysis to compare wages at the start of employment for jobs without probation and upon probation completion for jobs with probation. The findings reveal no statistically significant difference in starting wages, suggesting that workers are not rewarded for undergoing probation in terms of higher wages at the start of long-term contracts.
Subjects: 
wage
probation
job ads
Japan
JEL: 
J31
J41
M5
Document Type: 
Working Paper

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