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Labor market flexibility and poverty dynamics

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  • Amuedo-Dorantes, Catalina
  • Serrano-Padial, Ricardo

Abstract

The past two decades have witnessed a rapid growth in flexible work arrangements that, in some instances, could expose workers to a higher poverty risk via limited job stability, few advancement opportunities, and low wages. Nowhere in the world has this increase in flexible work arrangements being more evident than in Spain, where about a third of the wage and salary workforce holds fixed-term contracts. Using Spanish panel data and maximum-likelihood binary models that account for state dependence and unobserved heterogeneity, we examine the poverty implications of past and present temporary employment. Our findings suggest that fixed-term contracts are linked to a greater poverty exposure among women and older men relative to open-ended contracts. Furthermore, this greater poverty exposure can last several years due to feedback effects operating via job instability or via the transition to work statuses characterized by higher poverty hazards. Finally, the adverse impact of temporary employment is linked to the short duration of some contracts, thus signaling the importance of work attachment.

Suggested Citation

  • Amuedo-Dorantes, Catalina & Serrano-Padial, Ricardo, 2010. "Labor market flexibility and poverty dynamics," Labour Economics, Elsevier, vol. 17(4), pages 632-642, August.
  • Handle: RePEc:eee:labeco:v:17:y:2010:i:4:p:632-642
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    References listed on IDEAS

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    Cited by:

    1. Wim Van Lancker, 2011. "ItÂ’s all about the money? Temporary employment, gender, poverty and the role of regulations from a broad European perspective," Working Papers 1102, Herman Deleeck Centre for Social Policy, University of Antwerp.
    2. Sheila Mammen & Elizabeth Dolan & Sharon Seiling, 2015. "Explaining the Poverty Dynamics of Rural Families Using an Economic Well-Being Continuum," Journal of Family and Economic Issues, Springer, vol. 36(3), pages 434-450, September.
    3. Ayllón, Sara & Fusco, Alessio, 2017. "Are income poverty and perceptions of financial difficulties dynamically interrelated?," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 103-114.
    4. Francesca Modena & Fabio Sabatini, 2012. "I would if I could: precarious employment and childbearing intentions in Italy," Review of Economics of the Household, Springer, vol. 10(1), pages 77-97, March.
    5. Liana Son & Gratiela Georgiana Carica, 2011. "Labour Market Policies in Selected EU Member States: A Comparative and Impact Analysis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(39), pages 151-173, March.
    6. Francesca Modena & Concetta Rondinelli & Fabio Sabatini, 2014. "Economic Insecurity and Fertility Intentions: The Case of Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 233-255, May.
    7. Sara Ayllón & András Gábos, 2017. "The Interrelationships between the Europe 2020 Poverty and Social Exclusion Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1025-1049, February.
    8. Olga Cantó & Carlos Gradín & Coral Del Río, 2012. "Pobreza Crónica, Transitoria Y Recurrente En España," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 20(1), pages 69-94, Spring.
    9. Sara Ayllón, 2013. "Understanding poverty persistence in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(2), pages 201-233, June.
    10. Jeroen Horemans, 2017. "Atypical Employment and In-Work Poverty: A Different Story for Part-Timers and Temporary Workers?," Working Papers 1701, Herman Deleeck Centre for Social Policy, University of Antwerp.

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