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The Impact of Temporary Contracts on Gross Job and Worker Flows

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Author Info

  • Heyman, Fredrik

    ()
    (Research Institute of Industrial Economics)

  • Arai, Mahmood

    ()
    (Dept. of Economics, Stockholm University)

Abstract

Based on direct information on hires and separations for 11.000 establishments during 11 years, we report new evidence that around half of job and worker flows stem from temporary contracts which account for only around 10 percent of employment. The share of temporary contracts is positively correlated to employment growth indicating that firms use temporary jobs as a buffer in labor adjustment. Job reallocation for temporary contracts is acyclical. Service establishments with a high share of temporary employment exhibit acyclical job reallocation while permanent jobs in manufacturing are countercyclical.

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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 0494.

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Length: 20 pages
Date of creation: 22 Jan 2002
Date of revision:
Publication status: Published as Heyman, Fredrik and Mahmood Arai, 'Temporary Contracts and the Dynamics of Job Turnover ' in Economics Bulletin, 2004.
Handle: RePEc:hhs:hastef:0494

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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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Related research

Keywords: Job Creation and Job Destruction; Worker Flows; Dual Labor Markets; Temporary Employment.;

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Cited by:
  1. repec:ebl:ecbull:v:10:y:2004:i:4:p:1-6 is not listed on IDEAS
  2. Bertil Holmlund, 2003. "The Rise and Fall of Swedish Unemployment," CESifo Working Paper Series 918, CESifo Group Munich.
  3. Mahmood Arai & Fredrik Heyman, 2004. "Temporary contracts and the dynamics of job turnover," Economics Bulletin, AccessEcon, vol. 10(4), pages 1-6.

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