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Flexible Contracts and Human Capital Investments

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  • Didier Fouarge

    ()

  • Andries Grip

    ()

  • Wendy Smits
  • Robert Vries

Abstract

As suggested by human capital theory, workers with flexible contracts participate lessoften in training than those with permanent contracts. We find that this is merely dueto the fact that flexworkers receive less employer–funded training, a gap they can onlypartly compensate for by their own training investments. Flexworkers particularlyparticipate less in firm–specific training that is meant to keep up with new skilldemands than workers with permanent contracts. However, for those who participatein employer–funded firm–specific training, a temporary contract appears to facilitatethe transition to a permanent contract with the same employer. However, this doesnot hold for participation in self–paid training. This training, which is usually generaltraining, does not help in finding a better job.

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

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File URL: http://hdl.handle.net/10.1007/s10645-011-9179-0
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Bibliographic Info

Article provided by Springer in its journal De Economist.

Volume (Year): 160 (2012)
Issue (Month): 2 (June)
Pages: 177-195

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Handle: RePEc:kap:decono:v:160:y:2012:i:2:p:177-195

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Web page: http://www.springerlink.com/link.asp?id=100260

Related research

Keywords: Flexible contracts; Employer-funded training; Self-funded training; Labour market mobility; J24; J41; J62;

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References

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  1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages F189-F213, June.
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  3. Dekker, Ronald, 2007. "Non-standard employment and mobility in the Netherlands," MPRA Paper 7385, University Library of Munich, Germany.
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  8. Filipe Almeida-Santos & Karen Mumford, 2005. "Employee Training And Wage Compression In Britain," Manchester School, University of Manchester, vol. 73(3), pages 321-342, 06.
  9. A L Booth & M Chatterji, . "Training And Contracts," Dundee Discussion Papers in Economics 064, Economic Studies, University of Dundee.
  10. Jorn-Steffen Pischke, 2001. "Continuous training in Germany," LSE Research Online Documents on Economics 2473, London School of Economics and Political Science, LSE Library.
  11. Jonker,N. & Grip,A.,de, 1999. "Do employees with Flexible Contracts receive less Training?," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  12. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
  13. Philip Murphy & Paul L. Latreille & Melanie Jones & David Blackaby, 2008. "Is There a Public Sector Training Advantage? Evidence from the Workplace Employment Relations Survey," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 674-701, December.
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  17. Mirko Draca & Colin Green, 2004. "The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 609-625, November.
  18. Bierings Harry & Cörvers Frank & Montizaan Raymond & Vries Robert de, 2009. "Beroepenmobiliteit: Bruikbaarheid longitudinale gegevens Enquête Beroepsbevolking," ROA Technical Report 002, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  19. Edward P. Lazear, 2009. "Firm-Specific Human Capital: A Skill-Weights Approach," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 914-940, October.
  20. Cecilia Albert & Carlos García-Serrano & Virginia Hernanz, 2004. "Firm-provided training and temporary contracts," Spanish Economic Review, Springer, vol. 7(1), pages 67-88, January.
  21. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
  22. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
  23. Lynch, Lisa M, 1993. "The Economics of Youth Training in the United States," Economic Journal, Royal Economic Society, vol. 103(420), pages 1292-302, September.
  24. José Arranz & Carlos García-Serrano & Luis Toharia, 2010. "The Influence of Temporary Employment on Unemployment Exits in a Competing Risks Framework," Journal of Labor Research, Springer, vol. 31(1), pages 67-90, March.
  25. Crawford, Vincent P, 1990. "Relationship-Specific Investment," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 561-74, May.
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