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Transitions into Permanent Employment in Spain:An Empirical Analysis for Young Workers

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  • Fernando Muñoz-Bullón
  • J. Ignacio García-Pérez

Abstract

We analyze the Spanish temporary workers’ transitions into permanent employment and to what extent those who become unemployed are able to achieve a permanent job. Our focus is placed on the role of the individual’s sequence of temporary contracts on the probability of moving from temporary into permanent employment. We apply multiple-spell duration techniques to a longitudinal dataset of temporary workers obtained from Social Security records for the period 1996-2003. We basically find that even though transitions into permanent employment increase with tenure, temporary jobs do not constitute stepping stones towards permanent employment, since the probability of obtaining a permanent job decreases with repeated temporary jobs. Results also show that individuals with high duration of unemployment flow into permanent work less frequently.

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Paper provided by FEDEA in its series Working Papers with number 2007-09.

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Date of creation: May 2007
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Handle: RePEc:fda:fdaddt:2007-09

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  1. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 35(4), pages 815-29, October.
  2. Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany.
  3. Yolanda F. Rebollo & J. Ignacio Pérez, 2008. "The use of permanent contracts across Spanish regions: Do regional wage subsidies work?," Economic Working Papers at Centro de Estudios Andaluces, Centro de Estudios Andaluces E2008/09, Centro de Estudios Andaluces.
  4. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 1997. "Unemployment, joblessness, psychological well-being and self-esteem: Theory and evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 26(2), pages 133-158.
  5. D'Addio, Anna Cristina & Rosholm, Michael, 2005. "Exits from temporary jobs in Europe: A competing risks analysis," Labour Economics, Elsevier, Elsevier, vol. 12(4), pages 449-468, August.
  6. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 1996. "The psychological impact of unemployment and joblessness," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 25(3), pages 333-358.
  7. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2001. "The Role of Temporary Help Employment in Tight Labor Markets," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 01-73, W.E. Upjohn Institute for Employment Research.
  8. Goldsmith, Arthur H. & Veum, Jonathan R. & William Darity, Jr., 1996. "The impact of labor force history on self-esteem and its component parts, anxiety, alienation and depression," Journal of Economic Psychology, Elsevier, Elsevier, vol. 17(2), pages 183-220, April.
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Cited by:
  1. Bart COCKX & Matteo PICCHIO, 2009. "Are Short-Lived Jobs Stepping Stones to Long-Lasting Jobs ?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2009004, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. José I. García Pérez & Ioana Marinescu & Judit Vall Castello, 2014. "Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain," Working Papers, FEDEA 2014-08, FEDEA.
  3. Tabasso, Domenico, 2011. "Temporary Contracts and Monopsony Power in the UK Labour Market," IZA Discussion Papers 5867, Institute for the Study of Labor (IZA).
  4. Nagore García, Amparo & van Soest, Arthur, 2014. "Unemployment Transitions to Stable and Unstable Jobs Before and During the Crisis," IZA Discussion Papers 8121, Institute for the Study of Labor (IZA).
  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, Universidad Carlos III, Departamento de Economía de la Empresa wb083510, Universidad Carlos III, Departamento de Economía de la Empresa.
  6. Bosio, Giulio, 2008. "Labour market transition in Italy: an empirical investigation," MPRA Paper 18901, University Library of Munich, Germany.

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