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The Wage Effects of Fixed-term Contract Employment Revisited: an Investigation Based on Social Security Records

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  • Paul, Marie
  • Fernandez-Kranz, Daniel
  • Rodriguez-Planas, Nuria

Abstract

Using data from social security records on Spanish males, we investigate the wage effects of working under a fixed-term contract. In a first step, we provide fixed-effects estimates of the wage effect of working under a fixed-term contract for low-skilled, medium-skilled, and high-skilled men based on administrative data. Next, we include the individual s work history into the wage equation to obtain wage effects conditional on the work history and to study the returns to experience under fixed-term contracts. For this analysis we employ a three-equation random effects model estimated by Markov Chain Monte Carlo (MCMC) methods. Finally, we use the estimates of this model to simulate the long-term effects of working under a fixed-term contract on future career outcomes.

Suggested Citation

  • Paul, Marie & Fernandez-Kranz, Daniel & Rodriguez-Planas, Nuria, 2014. "The Wage Effects of Fixed-term Contract Employment Revisited: an Investigation Based on Social Security Records," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100324, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100324
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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