Temporary Work in Turbulent Times: The Swedish Experience
AbstractSweden has experienced a substantial increase in temporary work over the 1990s, with most of the rise occurring during a severe macroeconomic recession with mass unemployment. By the early 1990s, workers on fixed-term contracts accounted for 10 percent of the number of employees; by the end of the decade they accounted for 16 percent. The paper presents the Swedish institutional setting, documents basic stylised facts about fixed-term contracts, and discusses the causes of their increased prevalence. Our analysis reveals that open-ended and temporary employment exhibit strikingly different cyclical behaviour with temporary employment being more volatile. A recession is associated with an initial decline in temporary employment followed by a sharp rise from the trough to the end of the recession. We argue that the severe recession of the 1990s is a major factor behind the rise in temporary work in Sweden. Adverse macroeconomic conditions make firms more prone to offer fixed-term contracts and workers more willing to accept them.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 671.
Date of creation: 2002
Date of revision:
temporary jobs; labour market dynamics; unemployment;
Other versions of this item:
- Bertil Holmlund & Donald Storrie, 2002. "Temporary Work In Turbulent Times: The Swedish Experience," Economic Journal, Royal Economic Society, vol. 112(480), pages F245-F269, June.
- Holmlund, Bertil & Storrie, Donald, 2001. "Temporary Work in Turbulent Times: The Swedish Experience," Working Paper Series 2002:1, Uppsala University, Department of Economics.
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
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