Is temporary employment a stepping stone for unemployed school leavers?
AbstractMany school-leavers enter the labour market via temporary employment. In this paper we investigate the impact of a temporary employment spell at the start of the career on the transition rate into permanent employment. We compare the case of temporary employment to the hypothetical case of a direct transition from unemployment to permanent employment. In order to control for selective participation in temporary employment we include a large set of explanatory variables which have been especially collected to study school-leavers. We apply the AIC-information criterion to select the appropriate specification for unobserved heterogeneity. Based on the information criteria we conclude that given our data, there is no support for a model with selection in unobserved characteristics. Simulation exercises provide insights into the development of the effect of temporary employment over time. For a sample of unemployed Flemish school-leavers we find that in the short run temporary employment delays the school leaver’s transition to permanent employment. However, in the long run temporary employment acts as a stepping stone and decreases the duration until permanent employment.
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Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 08/542.
Length: 5 pages
Date of creation: Nov 2008
Date of revision:
temporary employment; school leavers; labour market policy;
Other versions of this item:
- Verhofstadt, Elsy & Goebel, Christian, 2008. "Is Temporary Employment a Stepping Stone for Unemployed School Leavers?," ZEW Discussion Papers 08-093, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
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- Picchio, Matteo & Staffolani, Stefano, 2013.
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