Fixed-term Contracts, Transitions and Wage Growth: Evidence from Spain
AbstractEmployment instability is considered one of the main problems of the Spanish labour market. Thus, the proportion of temporary workers in Spain is around 30 per cent that is the highest rate of the European Union countries. The persistence of this situation could increase the risk of labour market segmentation. This paper presents new evidence of the factors affecting workers' transition from temporary work to permanent one and analyses whether this transition has a positive effect on wage growth. The former objective is obtained by estimating discrete choice models and the latter by estimating a wage growth equation correcting for selectivity bias through the two-step method developed by Trost and Lee (1984). The data are obtained from the second and third waves of the Spanish Household Panel Survey (INE 1996) conducted over the period 1995–1996. The main results are, on the one hand, that personal and job characteristics have a significant influence on the probability of becoming a permanent worker and, on the other hand, that this transition has an important positive effect on wage growth.
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Bibliographic InfoArticle provided by "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration in its journal Economics and Applied Informatics.
Volume (Year): (2009)
Issue (Month): 1 ()
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labour force transitions; temporary and permanent workers; wage growth;
Find related papers by JEL classification:
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- J79 - Labor and Demographic Economics - - Labor Discrimination - - - Other
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Catalina Amuedo-Dorantes, 2000. "Work transitions into and out of involuntary temporary employment in a segmented market: Evidence from Spain," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
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