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Labor market effects of fixed-term employment contracts in Spain

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  • Alba, Alfonso

Abstract

This article studies the labor market effects of flxed-term employment contracts in Spain. First, we present various relevant features of the institutional setting which gave rise to and resulted from the introduction of fixed-term contracts. Second, we look at the evolution of temporary and permanent employment over the period 1987-1995 for which data are available. Then we discuss the implications of the distinction between temporary and permanent in the employment relationship for labor market outcomes in Spain. Third, we undertake the empírical analysis, which is aimed al knowing who are the workers under flxed-term contracts, how much they earn as compared to permanent workers, and how likely they are to obtain an indeflnite employment relationship. We find that non household heads, youth, less educated workers, women and private sector employees are over-represented among the temporary workers. These workers earn signiflcantly less than those with indefmite contracts, and their transition rates from temporary into indefmite employment status appears quite low, having fallen signiflcantly over fue period 1987-1995.

Suggested Citation

  • Alba, Alfonso, 1996. "Labor market effects of fixed-term employment contracts in Spain," UC3M Working papers. Economics 4105, Universidad Carlos III de Madrid. Departamento de Economía.
  • Handle: RePEc:cte:werepe:4105
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    References listed on IDEAS

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    1. Dolado, Juan J. & Jimeno, Juan F, 1995. "Why is Spanish Unemployment so High?," CEPR Discussion Papers 1184, C.E.P.R. Discussion Papers.
    2. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
    3. William T. Dickens & Kevin Lang, 1985. "Testing Dual Labor Market Theory: A Reconsideration of the Evidence," NBER Working Papers 1670, National Bureau of Economic Research, Inc.
    4. Juan F. Jimeno & Luis Toharia, 1993. "The effects of fixed-term employment on wages: theory and evidence from Spain," Investigaciones Economicas, Fundación SEPI, vol. 17(3), pages 475-494, September.
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    Cited by:

    1. Alba, Alfonso, 1997. "How temporary is temporary employment in Spain?," UC3M Working papers. Economics 7215, Universidad Carlos III de Madrid. Departamento de Economía.
    2. Catalina Amuedo-Dorantes, 2000. "Work Transitions into and Out of Involuntary Temporary Employment in a Segmented Market: Evidence from Spain," ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
    3. Climent Serrano, S., 2004. "Utilización y conocimiento de la herramientas de medición y su relación con los costes de calidad en las empresas certificadas en la norma ISO 9000 de la Comunidad Valenciana/Use and Knowledge of the ," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 22, pages 369-389, Agosto.

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    Keywords

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