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The Structure of the Permanent Job Wage Premium: Evidence from Europe

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  • Lawrence M. Kahn

Abstract

type="main" xml:id="irel12129-abs-0001"> Using individual longitudinal European Community Household Panel data for thirteen countries during 1995–2001 and fixed-effects models, I find for men, the permanent job wage premium is higher for younger workers and those who were noncitizens or foreign born; for women, the premium is higher for young workers, short-tenure workers, and those who were noncitizens or foreign born. Thus, the gain to permanent employment is higher for those with less experience in the domestic labor market.

Suggested Citation

  • Lawrence M. Kahn, 2016. "The Structure of the Permanent Job Wage Premium: Evidence from Europe," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(1), pages 149-178, January.
    • Handle: RePEc:bla:indres:v:55:y:2016:i:1:p:149-178
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    File URL: http://hdl.handle.net/10.1111/irel.2016.55.issue-1
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    Cited by:

    1. Ramskogler, Paul, 2021. "Labour market hierarchies and the macro-economy – Do labour market dualities affect wage growth in Europe?," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 154-165.
    2. Silva, António Dias da & Turrini, Alessandro, 2015. "Precarious and Less Well Paid? Wage Differences between Permanent and Fixed-term Contracts across the EU," IZA Policy Papers 105, Institute of Labor Economics (IZA).
    3. Maurizio, Roxana., 2016. "Non-standard forms of employment in Latin America : prevalence, characteristics and impacts on wages," ILO Working Papers 994906973402676, International Labour Organization.
    4. Duman, Anil, 2020. "Non-Standard Employment and Wage Differences across Gender: a quantile regression approach," GLO Discussion Paper Series 664, Global Labor Organization (GLO).
    5. Inga Laß & Mark Wooden, 2020. "Temporary Employment Contracts and Household Income," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 111-132, January.
    6. Albanese, Andrea & Gallo, Giovanni, 2020. "Buy flexible, pay more: The role of temporary contracts on wage inequality," Labour Economics, Elsevier, vol. 64(C).
    7. Iris Klinker & Bas Weel, 2024. "Wages and Employment in the Netherlands, 2017–2023," De Economist, Springer, vol. 172(3), pages 233-256, September.
    8. Garcia-Louzao, Jose & Hospido, Laura & Ruggieri, Alessandro, 2023. "Dual returns to experience," Labour Economics, Elsevier, vol. 80(C).
    9. Ivan Lagrosa, 2022. "Income dynamics in dual labor markets," Working Papers wp2022_2209, CEMFI.
    10. Iris Klinker & Bas ter Weel, 2024. "Wages and employment in the Netherlands, 2017-2023," Tinbergen Institute Discussion Papers 24-042/V, Tinbergen Institute.
    11. Lawrence M. Kahn, 2018. "Permanent Jobs, Employment Protection, and Job Content," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(3), pages 469-538, July.
    12. Lehner, Lukas & Ramskogler, Paul & Riedl, Aleksandra, 2022. "Begging thy coworker – Labor market dualization and the slow-down of wage growth in Europe," INET Oxford Working Papers 2022-04, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    13. 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.
    14. Klinker, Iris & ter Weel, Bas, 2024. "Wages and Employment in the Netherlands, 2017-2023," IZA Discussion Papers 17049, IZA Network @ LISER.
    15. Cindy Biesenbeek & Maikel Volkerink, 2023. "The price of flexible jobs: Wage differentials between permanent and flexible jobs in The Netherlands," Working Papers 779, DNB.
    16. Sophia Fauser & Michael Gebel, 2023. "Labour Market Dualism and the Heterogeneous Wage Gap for Temporary Employment. A Multilevel Study across 30 Countries," LIS Working papers 853, LIS Cross-National Data Center in Luxembourg.
    17. Leonie Westhoff, 2024. "Does Atypical Employment Come in Couples? Evidence from European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 172(2), pages 569-594, March.
    18. Diego Daruich & Sabrina Di Addario & Raffaele Saggio, 2023. "The Effects of Partial Employment Protection Reforms: Evidence from Italy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 2880-2942.
    19. Inga Laß & Thomas Skora & Heiko Rüger & Mark Wooden & Martin Bujard, 2024. "Does temporary employment increase length of commuting? Longitudinal evidence from Australia and Germany," Transportation, Springer, vol. 51(4), pages 1467-1491, August.
    20. Lukas Lehner & Paul Ramskogler & Aleksandra Riedl, 2024. "Beggaring Thy Co-Worker: Labor Market Dualization and the Wage Growth Slowdown in Europe," ILR Review, Cornell University, ILR School, vol. 77(5), pages 659-684, October.
    21. Cindy Biesenbeek & Maikel Volkerink, 2023. "The Price of Flexible Jobs: Wage Differentials between Permanent and Flexible Jobs in the Netherlands," De Economist, Springer, vol. 171(4), pages 367-401, December.
    22. Iga Magda & Monika Potoczna, 2014. "Does flexible employment pay? European evidence on the wage perspectives of female workers," IBS Working Papers 3/2014, Instytut Badan Strukturalnych.
    23. Per Skedinger, 2018. "Non-standard Employment in Sweden," De Economist, Springer, vol. 166(4), pages 433-454, December.
    24. Satu Ojala & Jouko Nätti & Liudmila Lipiäinen, 2018. "Types of Temporary Employment: An 8-Year Follow-Up of Labour Market Attachment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 141-163, July.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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