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Wage Growth Implications of Fixed-Term Employment: An Analysis by Contract Duration and Job Mobility

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  • Catalina Amuedo-Dorantes

    (Department of Economics, San Diego State University)

  • Ricardo Serrano-Padial

    ()
    (Department of Economics, University of California, San Diego)

Abstract

Focusing on Spain, where fixed-term workers account for a third of the wage and salary workforce, we examine the wage growth implications of fixed-term employment of varying duration while distinguishing between wage growth occurring on-the-job versus via job mobility. Wage growth among employees with indefinite work contracts largely occurs via job mobility, whereas fixed-term workers gain via job mobility as well as on-the-job. Consequently, job stayers with fixed-term contracts a year ago narrow their wage gap with respect to similar counterparts with indefinite-term contracts. Yet, this effect is solely driven by the 10.5 percentage points higher wage growth experienced by fixed-term workers with 6-months contracts able to keep their jobs beyond their initial contract period. Given the limited number of short-term temporary workers in those circumstances, the overall wage gap between past fixed-term and indefinite-term workers is unlikely to vanish in the near future.

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File URL: http://www-rohan.sdsu.edu/dept/econ/WPSeries/06_03.pdf
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Bibliographic Info

Paper provided by San Diego State University, Department of Economics in its series Working Papers with number 0016.

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Length: 36 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:sds:wpaper:0016

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Cited by:
  1. Takuya Hasebe, 2011. "The Type of Contract and Starting Wage and Wage Growth: The Evidence from New Graduates from Post-Secondary Schools in the Netherlands," Working Papers 20, AlmaLaurea Inter-University Consortium.
  2. Dimitris Pavlopoulos, 2009. "Starting Your Career with a Temporary Job: Stepping Stone or "Dead-End"?," SOEPpapers on Multidisciplinary Panel Data Research 228, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Bosio, Giulio, 2009. "Temporary employment and wage gap with permanent jobs: evidence from quantile regression," MPRA Paper 16055, University Library of Munich, Germany.

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