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Stepping-stones or dead-ends? An analysis of Swedish replacement contracts

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Author Info
Larsson, Laura () (IFAU - Institute for Labour Market Policy Evaluation)
Lindqvist, Linus () (IFAU - Institute for Labour Market Policy Evaluation)
Nordström Skans, Oskar () (IFAU - Institute for Labour Market Policy Evaluation)

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Abstract

The paper studies if temporary jobs in the form of fixed-term replacement contracts reduce the risk of future unemployment among job-seekers. Using exact matching on labour market history and personal characteristics we find positive effects of the replacement contract on future labour market status. We also find that the longer the replacement contract the higher the probability of having an open ended contract at the same site 2–2.5 years after the start of the contract. No effect of the length is found on unemployment, employment or wages. Overall, the results suggest that receiving a fixed term contract reduces the risk of future unemployment, and that a longer contract increases the position within the workplace but not on the market in general.

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Publisher Info
Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number 2005:18.

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Length: 37 pages
Date of creation: 28 Jun 2005
Date of revision:
Handle: RePEc:hhs:ifauwp:2005_018

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Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden
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Related research
Keywords: Unemployment temporary employment matching

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Johansson, Per & Martinson, Sara, 2000. "The effect of increased employer contacts within a labour market training program," Working Paper Series 2000:10, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  2. Alison L Booth & Juan J. Dolado & Jeff Frank, 2002. "Symposium On Temporary Work Introduction," Economic Journal, Royal Economic Society, vol. 112(480), pages F181-F188, June. [Downloadable!] (restricted)
  3. Nordström Skans, Oskar & Lindqvist, Linus, 2005. "Causal effects of subsidized career breaks," Working Paper Series 2005:17, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  4. Zijl, Marloes & van den Berg, Gerard J. & Heyma, Arjan, 2004. "Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration until Regular Work," IZA Discussion Papers 1241, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Jeff Borland & Yi-Ping Tseng, 2004. "Does 'Work for the Dole' Work?," Melbourne Institute Working Paper Series wp2004n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  6. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Bertil Holmlund & Donald Storrie, 2002. "Temporary Work In Turbulent Times: The Swedish Experience," Economic Journal, Royal Economic Society, vol. 112(480), pages F245-F269, June. [Downloadable!] (restricted)
    Other versions:
  8. Forslund, Anders & Johansson, Per & Lindqvist, Linus, 2004. "Employment subsidies - A fast lane from unemployment to work?," Working Paper Series 2004:18, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  9. V. Joseph Hotz & Guido W. Imbens & Julie H. Mortimer, 1999. "Predicting the Efficacy of Future Training Programs Using Past Experiences," NBER Technical Working Papers 0238, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Carling, Kenneth & Larsson, Laura, 2005. "Does early intervention help the unemployed youth?," Labour Economics, Elsevier, vol. 12(3), pages 301-319, June. [Downloadable!] (restricted)
  11. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February. [Downloadable!] (restricted)
  12. Larsson, Laura & Nordström Skans, Oskar, 2004. "Early indication of program performance: The case of a Swedish temporary employment program," Working Paper Series 2004:7, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  13. Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2005. "Welfare to Temporary Work: Implications for Labor Market Outcomes," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 154-173, December. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hägglund, Pathric, 2006. "Are there pre-programme effects of Swedish active labour market policies? Evidence from three randomised experiments," Working Paper Series 2006:2, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  2. Bart Cockx & Stéphane Robin & Christian Goebel, 2006. "Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium," IZA Discussion Papers 2432, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Nordström Skans, Oskar & Lindqvist, Linus, 2005. "Causal effects of subsidized career breaks," Working Paper Series 2005:17, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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