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Temporary Contracts across Generations: Long-term effects of a labour market reform at the margin

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  • Malo, Miguel A.
  • Cueto, Begona

Abstract

We analyze the impact of a labour market reform at the margin (an easier use of temporary contracts launched in Spain in 1984) across generations. As this type of reforms applies to new entrants into the labour market (or, in general, new hired workers), we use a regression discontinuity design to estimate a long-lasting effect on the mean temporary employment rates for generations entering into the labour market after the labour market respect to those already in the labour market. The results show a relatively small impact related with the reform at the margin. By educational levels, the estimated effect of the reform at the margin on the mean temporary employment rate is close to zero for those with university level for both genders.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44275.

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Date of creation: 07 Feb 2013
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Handle: RePEc:pra:mprapa:44275

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Keywords: temporary employment rate; cohorts; regression discontinuity;

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References

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  1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages F189-F213, June.
  2. María Guadalupe, 2002. "The Hidden Costs of Fixed Term Contracts: the Impact On Work Accidents," CEP Discussion Papers dp0551, Centre for Economic Performance, LSE.
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  4. Guido Imbens & Karthik Kalyanaraman, 2009. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," NBER Working Papers 14726, National Bureau of Economic Research, Inc.
  5. Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, 2002. "Employment consequences of restrictive permanent contracts: Evidence from Spanish labor market reforms," Economics Working Papers 651, Department of Economics and Business, Universitat Pompeu Fabra.
  6. 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.
  7. Maia Güell & Barbara Petrongolo, 2003. "How Binding are Legal Limits? Transitions from Termporary to Permanent Work in Spain," Working Papers 75, Barcelona Graduate School of Economics.
  8. Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Working Papers 13039, National Bureau of Economic Research, Inc.
  9. Cecilia Albert & Carlos García-Serrano & Virginia Hernanz, 2004. "Firm-provided training and temporary contracts," Spanish Economic Review, Springer, vol. 7(1), pages 67-88, January.
  10. Pilar García-Martínez & Miguel Malo, 2007. "The strategic use of dismissal legislation: an empirical analysis using Spanish data," European Journal of Law and Economics, Springer, vol. 23(2), pages 151-167, April.
  11. Tito Boeri, 2009. "What Happened to European Unemployment?," De Economist, Springer, vol. 157(2), pages 215-228, June.
  12. O Blanchard & A Landier, 2002. "The Perverse Effects of Partial Labour Market Reform: fixed--Term Contracts in France," Economic Journal, Royal Economic Society, vol. 112(480), pages F214-F244, June.
  13. José Ignacio García Pérez & Yolanda Rebollo Sanz, 2005. "The use of permanent and temporary jobs across Spanish regions: Do unit labour cost differentials offer an explanation?," Economic Working Papers at Centro de Estudios Andaluces E2005/16, Centro de Estudios Andaluces.
  14. Gianna Barbieri & Paolo Sestito, 2008. "Temporary Workers in Italy: Who Are They and Where They End Up," LABOUR, CEIS, vol. 22(1), pages 127-166, 03.
  15. David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs In Economics," Working Papers 1118, Princeton University, Department of Economics, Industrial Relations Section..
  16. Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages F270-F295, June.
  17. Alícia Adserà, 2004. "Changing fertility rates in developed countries. The impact of labor market institutions," Journal of Population Economics, Springer, vol. 17(1), pages 17-43, February.
  18. 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.
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Cited by:
  1. García Serrano, Carlos & Malo, Miguel A, 2013. "Beyond the contract type segmentation in Spain : country case studies on labour market segmentation," ILO Working Papers 481498, International Labour Organization.

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