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Why do recent graduates enter into flexible jobs?

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  • Bertrand-Cloodt Danielle
  • Cörvers Frank
  • Kriechel Ben
  • Thor Jesper van

    (ROA rm)

Abstract

The share of flexible jobs on the Dutch labour market is among the highest in Westerncountries, in particular for recent graduates. In this study we examine why recentgraduates enter into temporary contracts and whether flexible jobs match theirqualifications worse than permanent jobs do. Graduates that enter into flexible jobsface large wage penalties, a worse job match and less training participation than thoseentering into permanent jobs, even after correcting for ability differences. When thelabour market situation for a particular field of education deteriorates, a larger shareof recent graduates is forced into flexible jobs, which may threaten their position onthe labour market in the long run. Flexible work among graduates is unrelated to theirwillingness to take risks. Only for university graduates are there any indications thatflexible jobs may provide stepping stones to permanent jobs.

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Bibliographic Info

Paper provided by Maastricht University, Research Centre for Education and the Labour Market (ROA) in its series ROA Research Memorandum with number 010.

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Date of creation: 2011
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Handle: RePEc:unm:umaror:2011010

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Keywords: labour economics ;

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  1. Zijl, Marloes & van den Berg, Gerard J. & Heyma, Arjan, 2004. "Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration until Regular Work," IZA Discussion Papers 1241, Institute for the Study of Labor (IZA).
  2. John T. Addison & Christopher J. Surfield, 2008. "Atypical Work and Employment Continuity," Working Paper Series 12-08, The Rimini Centre for Economic Analysis, revised Jan 2008.
  3. 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.
  4. J. T. Addison & C. J. Surfield, 2009. "Does atypical work help the jobless? Evidence from a CAEAS/CPS cohort analysis," Applied Economics, Taylor & Francis Journals, vol. 41(9), pages 1077-1087.
  5. Dohmen, Thomas J. & Falk, Armin & Huffman, David & Sunde, Uwe & Schupp, Jürgen & Wagner, Gert G., 2009. "Individual risk attitudes: Measurement, determinants and behavioral consequences," Munich Reprints in Economics 20049, University of Munich, Department of Economics.
  6. Myra Wieling & Lex Borghans, 2001. "Descrepancies between Supply and Demand and Adjustment Processes in the Labour Market," LABOUR, CEIS, vol. 15(1), pages 33-56, 03.
  7. Daniel S. Hamermesh & Gerard A. Pfann, 1996. "Adjustment Costs in Factor Demand," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1264-1292, September.
  8. Bertrand-Cloodt Danielle & Cörvers Frank & Dijksman Sander & Dupuy Arnaud & Fouarge Didier & Thor Jesper van, 2012. "Methodiek arbeidsmarktprognoses en -indicatoren 2011-2016," ROA Technical Report 002, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  9. David Autor & Susan Houseman, 2009. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from 'Work First'," Upjohn Working Papers and Journal Articles 05-124, W.E. Upjohn Institute for Employment Research.
  10. Rebitzer, James B & Taylor, Lowell J, 1991. "A Model of Dual Labor Markets When Product Demand Is Uncertain," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1373-83, November.
  11. John T. Addison & Christopher J. Surfield, 2007. "Atypical Work and Pay," Southern Economic Journal, Southern Economic Association, vol. 73(4), pages 1038–1065, April.
  12. Reich, Michael & Gordon, David M & Edwards, Richard C, 1973. "A Theory of Labor Market Segmentation," American Economic Review, American Economic Association, vol. 63(2), pages 359-65, May.
  13. Cörvers Frank & Dupuy Arnaud & Dijksman Sander & Kriechel Ben & Montizaan Raymond, 2010. "Methodiek arbeidsmarktprognoses en -indicatoren 2009-2014," ROA Technical Report 005, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  14. Dekker, Ronald, 2007. "Non-standard employment and mobility in the Netherlands," MPRA Paper 7385, University Library of Munich, Germany.
  15. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
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