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Short-term contracts: trap or stepping stone toward stable employment?

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  • P. GIVORD

    (Insee)

  • L. WILNER

    (Crest)

Abstract

This paper focuses on labor market transitions and especially on those involving fixed-term contracts. Our contribution is twofold: first, we provide an accurate measure of labor market transitions and focus on transitions from fixed-term contracts to open-ended contracts or unemployment (dealing with the "stepping-stone or dead-end" question) ; second, we analyze the potential incentive effect of fixed-term contracts on effort. To deal with unobserved heterogeneity, we use a dynamic multinomial logit with fixed effects. We estimate the model on the French Labor Force Survey (2002-2008) which provides detailed information on quarterly transitions. We construct an indicator of effort for fixed-term workers based on a compared weekly working time. We find that fixed-term contracts provide slightly better perspectives than unemployment. However, we don't find evidence of any significant impact of working more on the probability of getting an open-ended contract.

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File URL: http://www.insee.fr/fr/publications-et-services/docs_doc_travail/G2009-04.pdf
File Function: Document de travail de la DESE numéro G2009-04
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Bibliographic Info

Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2009-04.

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Date of creation: 2009
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Handle: RePEc:crs:wpdeee:g2009-04

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Related research

Keywords: Fixed-term contracts; effort; transitions;

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Cited by:
  1. Thomas Amossé & Corinne Perraudin & Héloïse Petit, 2011. "Formes de rupture d'emploi et trajectoires de mobilités externes," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00684101, HAL.
  2. Héloïse Petit & Corinne Perraudin & Thomas Amossé, 2011. "Mobilité et segmentation du marché du travail : quel parcours professionnel après avoir perdu ou quitté son emploi ?," Économie et Statistique, Programme National Persée, vol. 450(1), pages 79-105.
  3. Simon Beck & Thierry Kamionka, 2012. "Who Benefits from Growth ?," Working Papers 2012-18, Centre de Recherche en Economie et Statistique.
  4. repec:hal:wpaper:halshs-00684101 is not listed on IDEAS
  5. Laetitia Comminges & Arnak Dalalyan, . "Minimax Testing of a Composite null Hypothesis Defined via a Quadratic Functional in the Model of regression," Working Papers 2012-19, Centre de Recherche en Economie et Statistique.
  6. Kahn, Lawrence M., 2009. "Temporary Jobs and Job Search Effort in Europe," IZA Discussion Papers 4020, Institute for the Study of Labor (IZA).

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