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Flexible contracts and human capital investments

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Author Info

  • Fouarge Didier
  • Grip Andries de
  • Smits Wendy
  • Vries Robert de

    (METEOR)

Abstract

As suggested by human capital theory, workers with flexible contracts participate less often intraining than those with permanent contracts. We find that this is merely due to the fact thatflexworkers receive less employer–funded training, a gap they can only partly compensate for bytheir own training investments. Flexworkers particularly participate less in firm–specifictraining that is meant to keep up with new skill demands than workers with permanent contracts.However, for those who participate in employer–funded firm–specific training, a temporary contractappears to facilitate the transition to a permanent contract with the same employer. However, thisdoes not hold for participation in self–paid training. This training, which is usually generaltraining, does not help in finding a better job.

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Bibliographic Info

Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 051.

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Date of creation: 2011
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Handle: RePEc:unm:umamet:2011051

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Web page: http://www.maastrichtuniversity.nl/
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Keywords: labour economics ;

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  1. 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.
  2. 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).
  3. Crawford, Vincent P, 1990. "Relationship-Specific Investment," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 561-74, May.
  4. Mirko Draca & Colin Green, 2004. "The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 609-625, November.
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  8. Jonker,N. & Grip,A.,de, 1999. "Do employees with Flexible Contracts receive less Training?," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  9. Lynch, Lisa M, 1993. "The Economics of Youth Training in the United States," Economic Journal, Royal Economic Society, vol. 103(420), pages 1292-302, September.
  10. Philip Murphy & Paul L. Latreille & Melanie Jones & David Blackaby, 2008. "Is There a Public Sector Training Advantage? Evidence from the Workplace Employment Relations Survey," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 674-701, December.
  11. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 1-19, January.
  12. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
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  22. Edward P. Lazear, 2009. "Firm-Specific Human Capital: A Skill-Weights Approach," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 914-940, October.
  23. Bierings Harry & Cörvers Frank & Montizaan Raymond & Vries Robert de, 2009. "Beroepenmobiliteit: Bruikbaarheid longitudinale gegevens Enquête Beroepsbevolking," ROA Technical Report 002, Maastricht University, Research Centre for Education and the Labour Market (ROA).
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