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Temporary employment and segmentation in the Spanish labour market: An empirical analysis through the study of wage differentials

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  • María A.Davia

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  • Virginia Hernanz

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Abstract

We aim to add empirical evidence to the already studied field of wage differentials between temporary and permanent workers in Spain. Our goal is to find out which determinants of wage differentials are relevant when explaining such differences. Furthermore, the endogeneity of such feature (the type of contract) is controlled for. The same exercise is done with two data sets: the ECHP and the Structure of Earnings Survey. Results show that wage differentials between temporary and permanent workers are explained by the differences in the distribution of personal and job characteristics in both groups, but not by differences in the rewards for those characteristics. These results remain mostly unchanged during the second part of the 1990’s, using information from five waves of the ECHP, and are robust to different changes in the econometric specification. Copyright Springer-Verlag Berlin/Heidelberg 2004

Suggested Citation

  • María A.Davia & Virginia Hernanz, 2004. "Temporary employment and segmentation in the Spanish labour market: An empirical analysis through the study of wage differentials," Spanish Economic Review, Springer;Spanish Economic Association, vol. 6(4), pages 291-318, December.
  • Handle: RePEc:spr:specre:v:6:y:2004:i:4:p:291-318
    DOI: 10.1007/s10108-004-0086-2
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    Citations

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    Cited by:

    1. Bosio, Giulio, 2009. "Temporary employment and wage gap with permanent jobs: evidence from quantile regression," MPRA Paper 16055, University Library of Munich, Germany.
    2. Ainhoa Herrarte & Julián Moral-Carcedo & Felipe Sáez, 2012. "The impact of childbirth on Spanish women’s decisions to leave the labor market," Review of Economics of the Household, Springer, vol. 10(3), pages 441-468, September.
    3. Maite Blazquez, 2006. "The Probability of Leaving a Low-Paid Job in Spain: The Importance of Switching into Permanent Employment," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 3, pages 58-86.
    4. J. Ignacio Garcia-Perez & Juan F. Jimeno, 2007. "Public Sector Wage Gaps In Spanish Regions," Manchester School, University of Manchester, vol. 75(4), pages 501-531, July.
    5. García Serrano, Carlos & Malo, Miguel A., 2013. "Beyond the contract type segmentation in Spain : country case studies on labour market segmentation," ILO Working Papers 994814983402676, International Labour Organization.
    6. Fomba Kamga, Benjamin, 2012. "Contrats de travail et segmentation du marché du travail dans le secteur manufacturier camerounais," L'Actualité Economique, Société Canadienne de Science Economique, vol. 88(2), pages 197-229, Juin.
    7. Jesús CLEMENTE & Millán DIAZ-FONCEA & Carmen MARCUELLO & Marcos SANSO-NAVARRO, 2012. "The Wage Gap Between Cooperative And Capitalist Firms: Evidence From Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(3), pages 337-356, September.
    8. 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.
    9. Catalina Amuedo-Dorantes & Sara de la Rica, 2009. "The timing of work and work-family conflicts in Spain sho has a split work schedule and why?," Working Papers 2009-35, FEDEA.
    10. Giulio Bosio, 2014. "The Implications of Temporary Jobs on the Distribution of Wages in Italy: An Unconditional IVQTE Approach," LABOUR, CEIS, vol. 28(1), pages 64-86, March.
    11. 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.
    12. repec:ilo:ilowps:481498 is not listed on IDEAS
    13. Matteo PICCHIO, 2006. "Wage Differentials between Temporary and Permanent Workers in Italy," Working Papers 257, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    14. Rudy Fichtenbaum, 2006. "Labour market segmentation and union wage gaps," Review of Social Economy, Taylor & Francis Journals, vol. 64(3), pages 387-420.
    15. María Cervini-Plá & Xavier Ramos, 2012. "Long-Term Earnings Inequality, Earnings Instability and Temporary Employment in Spain: 1993–2000," British Journal of Industrial Relations, London School of Economics, vol. 50(4), pages 714-736, December.
    16. Takuya Hasebe, 2011. "The Type of Contract and Starting Wage and Wage Growth: The Evidence from New Graduates from Post-Secondary Schools in the Netherlands," Working Papers 20, AlmaLaurea Inter-University Consortium.
    17. Mauricio Zunino, 2012. "Impactos de la reinstauración de los Consejos de Salarios sobre la distribución salarial en Uruguay," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 129-167, January-D.
    18. 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," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100324, Verein für Socialpolitik / German Economic Association.
    19. Juan Prieto & Juan Gabriel Rodríguez & Rafael Salas, "undated". "Polarization, Inequality and Tax Reforms," Working Papers 2003-23, FEDEA.
    20. repec:spr:soinre:v:134:y:2017:i:2:d:10.1007_s11205-016-1447-6 is not listed on IDEAS

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