The role of job interruptions, temporary contracts and multi-firm experiences in the temporality trap in Spain

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The role of job interruptions, temporary contracts and multi-firm experiences in the temporality trap in Spain

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Yolanda Rebollo Sanz () (Department of Economics, Universidad Pablo de Olavide)

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Yolanda F. Rebollo Sanz

Abstract

The path to a permanent contract often implies a sequence of temporary jobs, multi-firms experiences and unemployment spells. This paper investigates whether the characteristics of the path may influence the chances to get a permanent contract and the duration itself at the nonpermanent state. We estimate a simple hazard model with unobserved heterogeneity to examine the average duration at the non-permanent position needed to get a permanent one, either in the same or in other firm. The analysis considers two different groups of workers specially affected by temporary contracts. These are the young workers who just enter into the labor market, and the long term unemployed. We find evidence of the existence of the temporality trap. The probability of accessing into a permanent contract is non linearly related to the duration at the non-permanent state. It starts increasing but once it reaches a maximum it drops to pretty low levels. Besides, repeated temporary contracts and job interruptions reduce it while multi-firm experiences seem do not affect it negatively.

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Paper provided by Universidad Pablo de Olavide, Departamento de Economía in its series Working Papers with number 06.31.

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Length: 26 pages
Date of creation: Nov 2006
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Handle: RePEc:pab:wpaper:06.31

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Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

This paper has been announced in the following NEP Reports:

NEP-ALL-2006-11-12 (All new papers)
NEP-HRM-2006-11-12 (Human Capital & Human Resource Management)
NEP-LAB-2006-11-12 (Labour Economics)

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.:

Heckman, J & Singer, B, 1984. "The Identifiability of the Proportional Hazard Model," Review of Economic Studies, Blackwell Publishing, vol. 51(2), pages 231-41, April. [Downloadable!] (restricted)
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Other versions:
- Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA). [Downloadable!]
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Other versions:
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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.)

J.Ignacio García Pérez & Yolanda Rebollo Sanz, 2007. "The use of permanent contracts across Spanish regions: Do regional wage subsidies work?," Economic Working Papers at Centro de Estudios Andaluces E2007/07, Centro de Estudios Andaluces. [Downloadable!]
Other versions:
- J. Ignacio García-Pérez & Yolanda Rebollo, 2007. "The Use of Permanent Contracts Across Spanish Regions: Do Regional Wage Subsidies Work?," Working Papers 2007-08, FEDEA. [Downloadable!]
- Yolanda Rebollo Sanz & Jose Ignacio García Pérez, 2007. "The use of permanent contracts across Spanish regions: Do regional wage subsidies work?," Working Papers 07.06, Universidad Pablo de Olavide, Departamento de Economía. [Downloadable!]

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