Job Stability versus Employment Flexibility: An Ordered Probit Analysis of Contract Choices under the New Labor Contract Law

The open-ended contract provision of the new Labor Contract Law has drawn a great deal of attention and debate; even though the goal is to provide employees job stability and security. Responses from the survey of the paper showed relative few (13%) of these aspiring employees interested in open-ended contract. An ordered probit model was utilized in this study to determine primary factors affecting employees' choice between job stability and job flexibility.