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Are Temporary Help Agencies Changing Mobility Patterns In The Spanish Labour Market?

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  • J.I. García-Pérez

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  • Fernando Muñoz-Bullón

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Abstract

This paper examines to what extent Temporary Help Agency intermediation in the labour market affects workers' transitions into and out of employment in the Spanish youth labour market throughout the nineties. Results obtained show that this intermediation presents a positive impact on the likelihood of leaving unemployment, although only for short-term unemployed individuals; at the same time, however, the employment hazard rate is substantially higher for agency workers. We also find that employment hazard rates were substantially affected in the 90's by the extensive use of fixed-term contracts, although the 1997 labour market reform is found to reduce this hazard rate. Finally, very young workers, women and those with lower qualification levels are more likely to be affected by higher labour turnover.

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Bibliographic Info

Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb035513.

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Date of creation: Oct 2003
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Handle: RePEc:cte:wbrepe:wb035513

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  1. Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, 2002. "Employment consequences of restrictive permanent contracts: Evidence from Spanish labor market reforms," Economics Working Papers 651, Department of Economics and Business, Universitat Pompeu Fabra.
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  7. Vishwanath, Tara, 1989. "Job Search, Stigma Effect, and Escape Rate from Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 487-502, October.
  8. J. Ignacio García Pérez & Fernando Muñoz Bullón, 2001. "Temporary help agencies and workers' occupational mobility," Economics Working Papers 554, Department of Economics and Business, Universitat Pompeu Fabra.
  9. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
  10. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
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  12. Güell, Maia, 2003. "Fixed-Term Contracts and the Duration Distribution of Unemployment," IZA Discussion Papers 791, Institute for the Study of Labor (IZA).
  13. J. Ignacio García Pérez, 2001. "Non-stationary job search when jobs are not forever: A structural estimation," Economics Working Papers 556, Department of Economics and Business, Universitat Pompeu Fabra.
  14. James J. Heckman & Christopher J. Flinn, 1982. "New Methods for Analyzing Structural Models of Labor Force Dynamics," NBER Working Papers 0856, National Bureau of Economic Research, Inc.
  15. Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1371-91, November.
  16. Dolado, Juan José & García-Serrano, Carlos & Jimeno, Juan F., . "Drawing Lessons from the Boom of Temporary Jobs in Spain," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/3263, Universidad Carlos III de Madrid.
  17. Mortensen, Dale T., 1987. "Job search and labor market analysis," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 15, pages 849-919 Elsevier.
  18. Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 361-81, Oct.-Dec..
  19. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-66, September.
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Cited by:
  1. Jahn, Elke & Pozzoli, Dario, 2011. "Does the Sector Experience Affect the Pay Gap for Temporary Agency Workers?," Working Papers 11-9, University of Aarhus, Aarhus School of Business, Department of Economics.
  2. Jahn, Elke J. & Rosholm, Michael, 2010. "Looking Beyond the Bridge: How Temporary Agency Employment Affects Labor Market Outcomes," IZA Discussion Papers 4973, Institute for the Study of Labor (IZA).
  3. Antoni, Manfred & Jahn, Elke J., 2006. "Do changes in regulation affect employment duration in temporary work agencies?," IAB Discussion Paper 200618, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. Blázquez, Maite, 2005. "“Low-wage Employment and Mobility in Spain”," Working Papers in Economic Theory 2005/03, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
  5. Miguel A. Malo & Fernando Munoz-Bullon, 2008. "Working career progress in the tourism industry: Temp-to-perm transitions in Spain," Business Economics Working Papers wb083510, Universidad Carlos III, Departamento de Economía de la Empresa.
  6. Alfonso Alba-Ramirez & Jose Maria Arranz Muñoz & Fernando Muñoz-Bullon, 2006. "Unemployment Duration, Unemployment Benefits And Recalls," Business Economics Working Papers wb066218, Universidad Carlos III, Departamento de Economía de la Empresa.

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