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Wage Growth Implications of Fixed-Term Employment: An Analysis by Contract Duration and Job Mobility

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  • Amuedo-Dorantes, Catalina
  • Serrano-Padial, Ricardo

Abstract

Focusing on Spain, where fixed-term workers account for a third of the wage and salary workforce, we examine the wage growth implications of fixed-term employment of varying duration while distinguishing between wage growth occurring on-the-job versus via job mobility. Wage growth among employees with indefinite work contracts largely occurs via job mobility, whereas fixed-term workers gain via job mobility as well as on-the-job. Consequently, job stayers with fixed-term contracts a year ago narrow their wage gap with respect to similar counterparts with indefinite-term contracts. Yet, this effect is solely driven by the 10.5 percentage points higher wage growth experienced by fixed-term workers with 6-months contracts able to keep their jobs beyond their initial contract period. Given the limited number of short-term temporary workers in those circumstances, the overall wage gap between past fixed-term and indefinite-term workers is unlikely to vanish in the near future.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 14 (2007)
Issue (Month): 5 (October)
Pages: 829-847

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Handle: RePEc:eee:labeco:v:14:y:2007:i:5:p:829-847

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Cited by:
  1. Bosio, Giulio, 2009. "Temporary employment and wage gap with permanent jobs: evidence from quantile regression," MPRA Paper 16055, University Library of Munich, Germany.
  2. Dimitris Pavlopoulos, 2009. "Starting Your Career with a Temporary Job: Stepping Stone or "Dead-End"?," SOEPpapers on Multidisciplinary Panel Data Research 228, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Takuya Hasebe, 2011. "The Type of Contract and Starting Wage and Wage Growth: The Evidence from New Graduates from Post-Secondary Schools in the Netherlands," Working Papers 20, AlmaLaurea Inter-University Consortium.

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