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Transitions into Permanent Employment in Spain: An Empirical Analysis for Young Workers

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  • J. Ignacio García‐Pérez
  • Fernando Muñoz‐Bullón

Abstract

This article analyses the transitions into permanent employment of a sample of young temporary employees in Spain for the period 1996–2003. For this purpose, we apply multiple-spell duration techniques to a longitudinal dataset of temporary workers obtained from Social Security registers. Our main findings are as follows. First, the transitions from a temporary contract into unemployment and into another temporary contract are very high when compared with transitions into permanent employment. Second, the entry into permanent employment — although slightly increasing with tenure at the temporary contract — is very low; the only exception is that of semi‐skilled and unskilled individuals, who are particularly likely to enter into permanent employment at the 24th and the 36th month of tenure (respectively). Third, we find that there exists a substantial proportion of workers with unobservable characteristics that make them show high exit rates from temporary employment and, at the same time, a rapid exit from unemployment — while the remaining individuals exit from unemployment more slowly, particularly those who are receiving unemployment benefits.

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File URL: http://hdl.handle.net/10.1111/j.1467-8543.2009.00750.x
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Bibliographic Info

Article provided by London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 49 (2011)
Issue (Month): 1 (March)
Pages: 103-143

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Handle: RePEc:bla:brjirl:v:49:y:2011:i:1:p:103-143

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  1. Yolanda Rebollo Sanz & Jose Ignacio García Pérez, 2007. "The use of permanent contracts across Spanish regions: Do regional wage subsidies work?," Working Papers 07.06, Universidad Pablo de Olavide, Department of Economics.
  2. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 1997. "Unemployment, joblessness, psychological well-being and self-esteem: Theory and evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 26(2), pages 133-158.
  3. Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany.
  4. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 1996. "The psychological impact of unemployment and joblessness," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 25(3), pages 333-358.
  5. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2001. "The Role of Temporary Help Employment in Tight Labor Markets," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 01-73, W.E. Upjohn Institute for Employment Research.
  6. Goldsmith, Arthur H. & Veum, Jonathan R. & William Darity, Jr., 1996. "The impact of labor force history on self-esteem and its component parts, anxiety, alienation and depression," Journal of Economic Psychology, Elsevier, Elsevier, vol. 17(2), pages 183-220, April.
  7. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 35(4), pages 815-29, October.
  8. D'Addio, Anna Cristina & Rosholm, Michael, 2005. "Exits from temporary jobs in Europe: A competing risks analysis," Labour Economics, Elsevier, Elsevier, vol. 12(4), pages 449-468, August.
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Cited by:
  1. Bart Cockx & Matteo Picchio, 2009. "Are Short-Lived Jobs Stepping Stones to Long-Lasting Jobs?," CESifo Working Paper Series 2569, CESifo Group Munich.
  2. Tabasso, Domenico, 2011. "Temporary Contracts and Monopsony Power in the UK Labour Market," IZA Discussion Papers 5867, Institute for the Study of Labor (IZA).
  3. Miguel A. Malo & Fernando Munoz-Bullon, 2008. "Working career progress in the tourism industry: Temp-to-perm transitions in Spain," Business Economics Working Papers, Universidad Carlos III, Departamento de Economía de la Empresa wb083510, Universidad Carlos III, Departamento de Economía de la Empresa.
  4. J. Ignacio García-Pérez & Ioana Marinescu & Judit Vall Castello, 2014. "Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain," Working Papers 2014-08, FEDEA.
  5. Bosio, Giulio, 2008. "Labour market transition in Italy: an empirical investigation," MPRA Paper 18901, University Library of Munich, Germany.
  6. Nagore García, Amparo & van Soest, Arthur, 2014. "Unemployment Transitions to Stable and Unstable Jobs Before and During the Crisis," IZA Discussion Papers 8121, Institute for the Study of Labor (IZA).

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