Short-term contracts: trap or stepping stone toward stable employment?
This paper focuses on labor market transitions and especially on those involving fixed-term contracts. Our contribution is twofold: first, we provide an accurate measure of labor market transitions and focus on transitions from fixed-term contracts to open-ended contracts or unemployment (dealing with the "stepping-stone or dead-end" question) ; second, we analyze the potential incentive effect of fixed-term contracts on effort. To deal with unobserved heterogeneity, we use a dynamic multinomial logit with fixed effects. We estimate the model on the French Labor Force Survey (2002-2008) which provides detailed information on quarterly transitions. We construct an indicator of effort for fixed-term workers based on a compared weekly working time. We find that fixed-term contracts provide slightly better perspectives than unemployment. However, we don't find evidence of any significant impact of working more on the probability of getting an open-ended contract.
|Date of creation:||2009|
|Date of revision:|
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