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

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  • Lawrence Kahn

Abstract

Using longitudinal data on individuals from the European Community Household Panel for thirteen countries during 1995-2001, I investigate the wage premium for permanent jobs relative to temporary jobs. For men, the wage premium for a permanent job is lower for older workers and native born workers, the latter effect being especially strong relative to those born outside the EU; for women, the permanent job wage premium is lower for older workers and those with longer job tenure. These findings suggest that the gain to employment in permanent jobs is higher for those with less experience in the domestic labor market.

Suggested Citation

  • Lawrence Kahn, 2013. "The Structure of the Permanent Job Wage Premium: Evidence from Europe," CESifo Working Paper Series 4538, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4538
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp4538.pdf
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    References listed on IDEAS

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    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. Cahuc, Pierre & Postel-Vinay, Fabien, 2002. "Temporary jobs, employment protection and labor market performance," Labour Economics, Elsevier, vol. 9(1), pages 63-91, February.
    3. Samuel Bentolila & Juan J. Dolado & Pierre Cahuc & Thomas Le Barbanchon, 2010. "Two-Tier Labor Markets in the Great Recession: France Vs. Spain," Working Papers wp2010_1009, CEMFI.
    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. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-489, October.
    6. Edward P. Lazear, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, Oxford University Press, vol. 105(3), pages 699-726.
    7. Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420.
    8. Darren Lubotsky, 2007. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Journal of Political Economy, University of Chicago Press, vol. 115(5), pages 820-867, October.
    9. Francine D. Blau & Lawrence M. Kahn, 2005. "Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 184-193, February.
    10. Kahn, Lawrence M, 1998. "Collective Bargaining and the Interindustry Wage Structure: International Evidence," Economica, London School of Economics and Political Science, vol. 65(260), pages 507-534, November.
    11. Kahn, Lawrence M., 2012. "Temporary jobs and job search effort in Europe," Labour Economics, Elsevier, vol. 19(1), pages 113-128.
    12. 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.
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    Citations

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    Cited by:

    1. 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.
    2. Dias da Silva, António & Turrini, Alessandro, 2015. "Precarious and Less Well Paid? Wage Differences between Permanent and Fixed-term Contracts across the EU," IZA Policy Papers 105, Institute for the Study of Labor (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.

    More about this item

    Keywords

    wage structure; segmented labor markets; temporary jobs;

    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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