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 ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-093.
Date of creation: 2008
Date of revision:
temporary employment; school leavers; labour market policy;
Other versions of this item:
- C. GÃ¶bel & E. Verhofstadt, 2008. "Is temporary employment a stepping stone for unemployed school leavers?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, Ghent University, Faculty of Economics and Business Administration 08/542, Ghent University, Faculty of Economics and Business Administration.
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-14 (All new papers)
- NEP-CMP-2009-02-14 (Computational Economics)
- NEP-LAB-2009-02-14 (Labour Economics)
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- Bruno, Giovanni S. F. & Caroleo, Floro Ernesto & Dessy, Orietta, 2012.
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- Jahn, Elke J. & Rosholm, Michael, 2014. "Looking beyond the bridge: The effect of temporary agency employment on labor market outcomes," European Economic Review, Elsevier, Elsevier, vol. 65(C), pages 108-125.
- Jochen Kluve & Christoph Ehlert & Sandra Schaffner, 2011. "Training + Temp Work = Stepping Stone? â€“ Evaluating an Innovative Activation Program for Disadvantaged Youths," Ruhr Economic Papers, Rheinisch-WestfÃ¤lisches Institut fÃ¼r Wirtschaftsforschung, Ruhr-UniversitÃ¤t Bochum, UniversitÃ¤t Dortmund, UniversitÃ¤t Duisburg-Essen 0249, Rheinisch-WestfÃ¤lisches Institut fÃ¼r Wirtschaftsforschung, Ruhr-UniversitÃ¤t Bochum, UniversitÃ¤t Dortmund, UniversitÃ¤t Duisburg-Essen.
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