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Temporary jobs: who gets them, what are they worth, and do they lead anywhere?

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  • Booth, Alison L.
  • Francesconi, Marco
  • Frank, Jeff

Abstract

In Britain about 7% of male employees and 10% of female employees are in temporary jobs. In contrast to much of continental Europe, this proportion has been relatively stable over the 1990s. Using data from the British Household Panel Survey, we find that, on average, temporary workers report lower levels of job satisfaction, receive less work-related training, and are less well-paid than their counterparts in permanent employment. We find some evidence that temporary jobs are a stepping stone to permanent employment. We find some evidence that temporary jobs are a stepping stone to permanent work, although this transition takes between 18 months and three and a half years depending on contract type (seasonal or fixed term) and gender. Moreover, the wage growth penalty associated with experience of seasonal jobs is quite high, and it is likely that workers experiencing such jobs early in their working lives will never catch up. But experience of fixed-term contracts may lead to high wage growth if the workers move to permanent full-time jobs. This is because workers (especially women) who had such contracts enjoy high returns to (experience capital) once they acquire a permanent job.

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File URL: https://www.iser.essex.ac.uk/publications/working-papers/iser/2000-13.pdf
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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2000-13.

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Date of creation: 01 Apr 2000
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Publication status: published
Handle: RePEc:ese:iserwp:2000-13

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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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References

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  1. Snower,Dennis J. & Dehesa,Guillermo de la (ed.), 1997. "Unemployment Policy," Cambridge Books, Cambridge University Press, number 9780521599214, 9.
  2. Hausman, Jerry A. & Taylor, William E., 1981. "Panel data and unobservable individual effects," Journal of Econometrics, Elsevier, vol. 16(1), pages 155-155, May.
  3. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 14(3), pages 394-424, July.
  4. Mark B. Stewart, 2002. "The Inter-related Dynamics of Unemployment and Low Pay," 10th International Conference on Panel Data, Berlin, July 5-6, 2002, International Conferences on Panel Data B2-4, International Conferences on Panel Data.
  5. Cramer, J. S. & Ridder, G., 1991. "Pooling states in the multinomial logit model," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 267-272, February.
  6. Lewis Segal & Daniel Sullivan, 1996. "The growth of temporary services work," Working Paper Series, Macroeconomic Issues WP-96-26, Federal Reserve Bank of Chicago.
  7. Henry S. Farber, 1999. "Alternative and Part-Time Employment Arrangements as a Response to Job Loss," NBER Working Papers 7002, National Bureau of Economic Research, Inc.
  8. Booth, Alison L & Frank, Jeff, 1996. "Seniority, Earnings and Unions," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 63(252), pages 673-86, November.
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  10. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  11. Alison L. Booth & Marco Francesconi & Carlos Garcia-Serrano, 1999. "Job tenure and job mobility in Britain," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(1), pages 43-70, October.
  12. Boheim, Rene & Taylor, Mark P., 2002. "The search for success: do the unemployed find stable employment?," Labour Economics, Elsevier, vol. 9(6), pages 717-735, December.
  13. Lazear, Edward P & Rosen, Sherwin, 1990. "Male-Female Wage Differentials in Job Ladders," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 8(1), pages S106-23, January.
  14. Audrey Light & Kathleen McGarry, 1998. "Job Change Patterns And The Wages Of Young Men," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 276-286, May.
  15. Dickens, Richard & Gregg, Paul & Wadsworth, Jonathan, 2000. "New Labour and the Labour Market," Oxford Review of Economic Policy, Oxford University Press, vol. 16(1), pages 95-113, Spring.
  16. Farber, Henry S, 1999. "Alternative and Part-Time Employment Arrangements as a Response to Job Loss," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(4), pages S142-69, October.
  17. Bentolila, Samuel & Bertola, Giuseppe, 1990. "Firing Costs and Labour Demand: How Bad Is Eurosclerosis?," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 57(3), pages 381-402, July.
  18. Susan N. Houseman & Anne E. Polivka, 1999. "The Implications of Flexible Staffing Arrangements for Job Stability," Upjohn Working Papers and Journal Articles 99-56, W.E. Upjohn Institute for Employment Research.
  19. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  20. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
  21. Eng Loh, 1994. "Employment probation as a sorting mechanism," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 471-486, April.
  22. Wang, Ruqu & Weiss, Andrew, 1998. "Probation, layoffs, and wage-tenure profiles: A sorting explanation," Labour Economics, Elsevier, vol. 5(3), pages 359-383, September.
  23. Dolton, Peter J & van der Klaauw, Wilbert, 1995. "Leaving Teaching in the UK: A Duration Analysis," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 105(429), pages 431-44, March.
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Citations

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Cited by:
  1. Emanuela Ghignoni, 2006. "Human capital, unemployment, and probability of transition to permanent employment in the Italian regional labour markets," Working Papers 93, University of Rome La Sapienza, Department of Public Economics.
  2. repec:ese:iserwp:2000-35 is not listed on IDEAS
  3. Jan Sauermann, 2006. "Who Invests in Training if Contracts are Temporary? - Empirical Evidence for Germany Using Selection Correction," IWH Discussion Papers 14, Halle Institute for Economic Research.
  4. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones or Dead Ends?," LABORatorio R. Revelli Working Papers Series 8, LABORatorio R. Revelli, Centre for Employment Studies.
  5. Tabasso, Domenico, 2011. "Temporary Contracts and Monopsony Power in the UK Labour Market," IZA Discussion Papers 5867, Institute for the Study of Labor (IZA).
  6. José Antonio Ariza Montes, 2008. "La estabilidad laboral en Andalucía: un análisis comparado entre hombres y mujeres mediante un modelo de regresión logística," Economic Working Papers at Centro de Estudios Andaluces E2008/06, Centro de Estudios Andaluces.
  7. repec:ese:iserwp:2000-37 is not listed on IDEAS
  8. repec:ese:iserwp:2000-05 is not listed on IDEAS
  9. Dimitri Paolini & Juan de Tena, 2012. "Short or long-term contract? Firm’s optimal choice," Empirica, Springer, vol. 39(1), pages 1-18, February.
  10. Luca Nunziata & Stefano Staffolani, 2001. "On Short-Term Contracts Regulations," Economics Papers 2001-W7, Economics Group, Nuffield College, University of Oxford.
  11. Ferrari, Filippo, 2011. "Lo sviluppo delle competenze nei contesti precari
    [Skills development in precariousness: the dark side of flexibility?]
    ," MPRA Paper 33284, University Library of Munich, Germany.
  12. Fabrizio Alboni & Furio Camillo & Giorgio Tassinari, 2009. "A data mining approach for the monitoring of active labour market policies," Quaderni di Dipartimento 2, Department of Statistics, University of Bologna.
  13. Wallette, Mårten, 2005. "Temporary Jobs and On-the-Job Training in Sweden - A Negative Nexus?," Working Papers 2005:13, Lund University, Department of Economics.
  14. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June.
  15. repec:ese:iserwp:2001-05 is not listed on IDEAS
  16. Tatiana KARABCHUK, 2011. "Temporary employment in Russia: why mostly men?," Scientific Bulletin - Economic Sciences, University of Pitesti, University of Pitesti, vol. 10(1), pages 42-60.
  17. repec:ese:iserwp:2001-15 is not listed on IDEAS

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