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Are contingent jobs dead ends or stepping stones to regular jobs? Evidence from a structural estimation

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  • Esteban-Pretel, Julen
  • Nakajima, Ryo
  • Tanaka, Ryuichi

Abstract

The proportion of part-time, dispatch, and temporary workers has increased in many developed economies in recent years. These workers receive lower average wages and benefits, and are subject to lower employment stability. This paper analyzes the effects of initially taking such jobs on the employment careers of young workers. We build an on-and-off-the-job search model, using Japanese data to perform a structural estimation of the model parameters and simulate career paths, in order to study the effects of the initial choice of employment on the probability of having a regular job in the future and on the welfare of the worker. We find that although contingent jobs are neither stepping stones towards regular employment nor dead ends, starting a career in a contingent job has a lasting effect on the welfare of the individual in Japan.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 18 (2011)
Issue (Month): 4 (August)
Pages: 513-526

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Handle: RePEc:eee:labeco:v:18:y:2011:i:4:p:513-526

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Contingent employment Job transition On-and-off-the-job search Structural estimation;

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References

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  1. Zijl, Marloes & van den Berg, Gerard J & Heyma, Arjan, 2004. "Stepping-stones for the unemployed: The effect of temporary jobs on the duration until regular work," Working Paper Series 2004:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Gaston, Noel & Kishi, Tomoko, 2007. "Part-time workers doing full-time work in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(4), pages 435-454, December.
  3. Susan Houseman & Machiko Osawa (ed.), 2003. "Nonstandard Work in Developed Economies: Causes and Consequences," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number nwde.
  4. Genda, Yuji & Kurosawa, Masako, 2001. "Transition from School to Work in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 465-488, December.
  5. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones or Dead Ends?," LABORatorio R. Revelli Working Papers Series 8, LABORatorio R. Revelli, Centre for Employment Studies.
  6. David H. Autor & Susan Houseman, 2005. "Do Temporary Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from 'Work First'," NBER Working Papers 11743, National Bureau of Economic Research, Inc.
  7. Kondo, Ayako, 2007. "Does the first job really matter? State dependency in employment status in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(3), pages 379-402, September.
  8. Gaston, Noel & Timcke, David, 1999. "Do Casual Workers Find Permanent Full-Time Employment? Evidence from the Australian Youth Survey," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 333-47, December.
  9. Olympia Bover & Ramón Gómez, 2004. "Another look at unemployment duration: exit to a permanent vs. a temporary job," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 285-314, May.
  10. Michael Kvasnicka, 2009. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Chapters, in: Studies of Labor Market Intermediation, pages 335-372 National Bureau of Economic Research, Inc.
  11. Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, vol. 18(1), pages 115-168, January.
  12. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  13. Antoni Cunyat & Elena Casquel, 2004. "The Dynamics Of Temporary Jobs In Spain," Royal Economic Society Annual Conference 2004 141, Royal Economic Society.
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Citations

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Cited by:
  1. Kambayashi, Ryo & Kato, Takao, 2013. "Good Jobs, Bad Jobs, and the Great Recession: Lessons from Japan’s Lost Decade," CEI Working Paper Series 2013-01, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  2. Niebuhr, Annekatrin & Buch, Tanja, 2013. "Wage effects of labor market entry via temporary work agency employment - evidence for German apprenticeship graduates," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79818, Verein für Socialpolitik / German Economic Association.
  3. Okudaira, Hiroko & Ohtake, Fumio & Kume, Koichi & Tsuru, Kotaro, 2013. "What does a temporary help service job offer? Empirical suggestions from a Japanese survey," Journal of the Japanese and International Economies, Elsevier, vol. 28(C), pages 37-68.
  4. Oshio, Takashi & Inagaki, Seiichi, 2013. "Does initial job status affect midlife outcomes and mental health? Evidence from a survey in Japan," CIS Discussion paper series 585, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  5. Julen ESTEBAN-PRETEL & NAKAJIMA Ryo & TANAKA Ryuichi, 2011. "Changes in Japan's Labor Market Flows due to the Lost Decade," Discussion papers 11039, Research Institute of Economy, Trade and Industry (RIETI).
  6. Hiroaki Miyamoto, 2012. "Growth and Non-Regular Employment," Working Papers EMS_2012_04, Research Institute, International University of Japan.
  7. OSHIO Takashi & INAGAKI Seiichi, 2014. "Does Initial Job Status Affect Midlife Outcomes and Mental Health? Evidence from a survey in Japan," Discussion papers 14025, Research Institute of Economy, Trade and Industry (RIETI).
  8. Makoto Kakinaka & Hiroaki Miyamoto, 2012. "Extensive vs. Intensive Margin in Japan," Working Papers EMS_2012_14, Research Institute, International University of Japan.
  9. Kenn Ariga & Masako Kurosawa & Fumio Ohtake & Masaru Sasaki, 2009. "How do high school graduates in Japan compete for regular, full time jobs? An empirical analysis based upon an internet survey of the youth," KIER Working Papers 678, Kyoto University, Institute of Economic Research.
  10. ASANO Hirokatsu & ITO Takahiro & KAWAGUCHI Daiji, 2011. "Why Has the Fraction of Contingent Workers Increased? A case study of Japan," Discussion papers 11021, Research Institute of Economy, Trade and Industry (RIETI).
  11. Tanaka, Ayumu, 2013. "The causal effects of exporting on domestic workers: A firm-level analysis using Japanese data," Japan and the World Economy, Elsevier, vol. 28(C), pages 13-23.
  12. Yamada, Tomoaki, 2013. "Cross-sectional Facts in Japan using Keio Household Panel Survey," MPRA Paper 49813, University Library of Munich, Germany.

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