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Transitions into Permanent Employment in Spain: An Empirical Analysis for Young Workers

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  • J. Ignacio García‐Pérez
  • Fernando Muñoz‐Bullón

Abstract

This article analyses the transitions into permanent employment of a sample of young temporary employees in Spain for the period 1996–2003. For this purpose, we apply multiple-spell duration techniques to a longitudinal dataset of temporary workers obtained from Social Security registers. Our main findings are as follows. First, the transitions from a temporary contract into unemployment and into another temporary contract are very high when compared with transitions into permanent employment. Second, the entry into permanent employment — although slightly increasing with tenure at the temporary contract — is very low; the only exception is that of semi‐skilled and unskilled individuals, who are particularly likely to enter into permanent employment at the 24th and the 36th month of tenure (respectively). Third, we find that there exists a substantial proportion of workers with unobservable characteristics that make them show high exit rates from temporary employment and, at the same time, a rapid exit from unemployment — while the remaining individuals exit from unemployment more slowly, particularly those who are receiving unemployment benefits.

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  • J. Ignacio García‐Pérez & Fernando Muñoz‐Bullón, 2011. "Transitions into Permanent Employment in Spain: An Empirical Analysis for Young Workers," British Journal of Industrial Relations, London School of Economics, vol. 49(1), pages 103-143, March.
  • Handle: RePEc:bla:brjirl:v:49:y:2011:i:1:p:103-143
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    File URL: http://hdl.handle.net/10.1111/j.1467-8543.2009.00750.x
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    5. Nagore Garcia, A. & van Soest, A.H.O., 2014. "Unemployment Transitions to Stable and Unstable Jobs Before and During the Crisis," Other publications TiSEM 9292d3ce-b211-4fc4-a7f2-9, Tilburg University, School of Economics and Management.
    6. J Ignacio García-Pérez & Ioana Marinescu & Judit Vall Castello, 2019. "Can Fixed-term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain," The Economic Journal, Royal Economic Society, vol. 129(620), pages 1693-1730.
    7. Tabasso, D, 2009. "Temporary Contracts and Monopsony Power in the UK Labour Market," Economics Discussion Papers 8938, University of Essex, Department of Economics.
    8. Gabriella BERLOFFA & Eleonora MATTEAZZI & Alina ŞANDOR & Paola VILLA, 2016. "Youth employment security and labour market institutions: A dynamic perspective," International Labour Review, International Labour Organization, vol. 155(4), pages 651-678, December.
    9. Bosio, Giulio, 2008. "Labour market transition in Italy: an empirical investigation," MPRA Paper 18901, University Library of Munich, Germany.
    10. Malo, Miguel A. & Muñoz-Bullón, Fernando, 2008. "Working career progress in the tourism industry : temp-to perm transitions in Spain," DEE - Working Papers. Business Economics. WB wb083510, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
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