IDEAS home Printed from https://ideas.repec.org/a/cud/journl/v36y2013i101p84-99.html
   My bibliography  Save this article

Temporary Contracts across Generations: Long-term effects of a labour market reform at the margin

Author

Listed:
  • Miguel Á. Malo

    (Departamento de Economía e Historia Económica, Universidad de Salamanca, Salamanca, Spain)

  • Begoña Cueto

    (Departamento de Economía Aplicada, Universidad de Oviedo, Oviedo, Spain)

Abstract

We analyse the impact of a labour market reform at the margin (an easier use of temporary contracts launched in Spain in 1984) across generations. As this type of reforms applies to new entrants into the labour market (or, in general, new hired workers), we use a regression discontinuity design to estimate a long-lasting effect on the mean temporary employment rates for generations entering into the labour market compared to those already in the labour market. The results show a relatively small impact related to the reform at the margin. By educational levels, the estimated effect of the reform at the margin on the mean temporary employment rate is close to zero for those with university level education for both genders.

Suggested Citation

  • Miguel Á. Malo & Begoña Cueto, 2013. "Temporary Contracts across Generations: Long-term effects of a labour market reform at the margin," Cuadernos de Economía - Spanish Journal of Economics and Finance, Asociación Cuadernos de Economía, vol. 36(101), pages 84-99, Agosto.
  • Handle: RePEc:cud:journl:v:36:y:2013:i:101:p:84-99
    as

    Download full text from publisher

    File URL: https://repositorio.uam.es/bitstream/handle/10486/682299/CE_101_3.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lawrence M. Kahn, 2007. "The Impact of Employment Protection Mandates on Demographic Temporary Employment Patterns: International Microeconomic Evidence," Economic Journal, Royal Economic Society, vol. 117(521), pages 333-356, June.
    2. José Ignacio García Pérez & Yolanda Rebollo Sanz, 2005. "The use of permanent and temporary jobs across Spanish regions: Do unit labour cost differentials offer an explanation?," Economic Working Papers at Centro de Estudios Andaluces E2005/16, Centro de Estudios Andaluces.
    3. Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, "undated". "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms," Working Papers 2003-14, FEDEA.
    4. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    5. Cecilia Albert & Carlos García-Serrano & Virginia Hernanz, 2004. "Firm-provided training and temporary contracts," Spanish Economic Review, Springer;Spanish Economic Association, vol. 7(1), pages 67-88, January.
    6. Guadalupe, Maria, 2003. "The hidden costs of fixed term contracts: the impact on work accidents," Labour Economics, Elsevier, vol. 10(3), pages 339-357, June.
    7. Alícia Adserà, 2004. "Changing fertility rates in developed countries. The impact of labor market institutions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 17-43, February.
    8. Catalina Amuedo-Dorantes, 2000. "Work Transitions into and Out of Involuntary Temporary Employment in a Segmented Market: Evidence from Spain," ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
    9. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June.
    10. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    11. Guell, Maia & Petrongolo, Barbara, 2007. "How binding are legal limits? Transitions from temporary to permanent work in Spain," Labour Economics, Elsevier, vol. 14(2), pages 153-183, April.
    12. Pilar García-Martínez & Miguel Malo, 2007. "The strategic use of dismissal legislation: an empirical analysis using Spanish data," European Journal of Law and Economics, Springer, vol. 23(2), pages 151-167, April.
    13. Gianna Barbieri & Paolo Sestito, 2008. "Temporary Workers in Italy: Who Are They and Where They End Up," LABOUR, CEIS, vol. 22(1), pages 127-166, March.
    14. Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages 270-295, June.
    15. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," Review of Economic Studies, Oxford University Press, vol. 79(3), pages 933-959.
    16. Bertil Holmlund & Donald Storrie, 2002. "Temporary Work In Turbulent Times: The Swedish Experience," Economic Journal, Royal Economic Society, vol. 112(480), pages 245-269, June.
    17. Tito Boeri, 2009. "What Happened to European Unemployment?," De Economist, Springer, vol. 157(2), pages 215-228, June.
    18. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    19. O Blanchard & A Landier, 2002. "The Perverse Effects of Partial Labour Market Reform: fixed--Term Contracts in France," Economic Journal, Royal Economic Society, vol. 112(480), pages 214-244, June.
    20. Lee, David S., 2008. "Randomized experiments from non-random selection in U.S. House elections," Journal of Econometrics, Elsevier, vol. 142(2), pages 675-697, February.
    21. Pedro Mira & Namkee Ahn, 2001. "Job bust, baby bust?: Evidence from Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(3), pages 505-521.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bonilla, Roberto & Malo, Miguel Á. & Pinto, Fernando, 2022. "Marriage wage premium with contract type heterogeneity," Labour Economics, Elsevier, vol. 78(C).
    2. repec:ilo:ilowps:481498 is not listed on IDEAS
    3. Luis Cárdenas & Paloma Villanueva, 2021. "Flexibilization at the Core to Reduce Labour Market Dualism: Evidence from the Spanish Case," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 214-235, March.
    4. García Serrano, Carlos. & Malo, Miguel Ángel., 2013. "Beyond the contract type segmentation in Spain : country case studies on labour market segmentation," ILO Working Papers 994814983402676, International Labour Organization.
    5. Malo, Miguel & Cueto, Begoña, 2014. "El empleo de los jóvenes en España: Del bloqueo en la entrada del mercado de trabajo a los programas de Garantía Juvenil [Young employment in Spain: From the blockade of the labour market to the Yo," MPRA Paper 59473, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rocio Bonet & Cristina Cruz & Daniel Fernández Kranz & Rachida Justo, 2013. "Temporary Contracts and Work—Family Balance in a Dual Labor Market," ILR Review, Cornell University, ILR School, vol. 66(1), pages 55-87, January.
    2. Giovanni S.F. Bruno & Floro E. Caroleo & Orietta Dessy, 2013. "Stepping stones versus dead end jobs: exits from temporary contracts in Italy after the 2003 reform," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 121(1), pages 31-62.
    3. Olga Kuzmina, 2023. "Employment Flexibility and Capital Structure: Evidence from a Natural Experiment," Management Science, INFORMS, vol. 69(9), pages 4992-5017, September.
    4. J. Ignacio García-Pérez & Yolanda F. Rebollo Sanz, 2009. "The use of permanent contracts across Spanish regions: Do regional wage subsidies work?," Investigaciones Economicas, Fundación SEPI, vol. 33(1), pages 97-130, January.
    5. Tai Lee, 2022. "The Impact of Employment Protection on the Probability of Job Separation: Evidence from Job Duration Data in South Korea," Journal of Labor Research, Springer, vol. 43(3), pages 369-414, December.
    6. Matteo Picchio & Mattia Filomena, 2021. "Are Temporary Jobs Stepping Stones Or Dead Ends? A Meta-Analytical Review Of The Literature," Working Papers 455, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    7. José Ignacio García Pérez & Yolanda Rebollo Sanz, 2005. "The use of permanent and temporary jobs across Spanish regions: Do unit labour cost differentials offer an explanation?," Economic Working Papers at Centro de Estudios Andaluces E2005/16, Centro de Estudios Andaluces.
    8. Gyeongjoon Yoo & Changhui Kang, 2012. "The Effect of Protection of Temporary Workers on Employment Levels: Evidence from the 2007 Reform of South Korea," ILR Review, Cornell University, ILR School, vol. 65(3), pages 578-606, July.
    9. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2008. "Two-tier Employment Protection Reforms: The Spanish Experience," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(4), pages 49-56, December.
    10. Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2011. "The part-time pay penalty in a segmented labor market," Labour Economics, Elsevier, vol. 18(5), pages 591-606, October.
    11. Garcia-Louzao, Jose & Hospido, Laura & Ruggieri, Alessandro, 2023. "Dual returns to experience," Labour Economics, Elsevier, vol. 80(C).
    12. 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.
    13. Bart Cockx & Eva Van Belle, 2019. "Waiting longer before claiming, and activating youth: no point?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(4), pages 658-687, January.
    14. 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.
    15. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2008. "Two-tier Employment Protection Reforms: The Spanish Experience," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(04), pages 49-56, December.
    16. Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan F., 2019. "Dual Labour Markets Revisited," IZA Discussion Papers 12126, Institute of Labor Economics (IZA).
    17. Engellandt, Axel & Riphahn, Regina T., 2005. "Temporary contracts and employee effort," Labour Economics, Elsevier, vol. 12(3), pages 281-299, June.
    18. McGinnity, Frances & Mertens, Antje, 2002. "Fixed-term contracts in East and West Germany: Low wages, poor prospects?," SFB 373 Discussion Papers 2002,72, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    19. Imanol Nunez & Ilias Livanos, 2015. "Temps “by choice”? An Investigation of the Reasons Behind Temporary Employment Among Young Workers in Europe," Journal of Labor Research, Springer, vol. 36(1), pages 44-66, March.
    20. Bukowski, Maciej & Lewandowski, Piotr & Koloch, Grzegorz & Baranowska, Anna & Magda, Iga & Szydlowski, Arkadiusz & Bober, Magda & Bieliński, Jacek & Zawistowski, Julian & Sarzalska, Malgorzata, 2008. "Employment in Poland 2007: Security on flexible labour market," MPRA Paper 14284, University Library of Munich, Germany.

    More about this item

    Keywords

    Temporary employment rate; Cohorts; Regression discontinuity;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cud:journl:v:36:y:2013:i:101:p:84-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Erick Tinsson (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.