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Temporary jobs: who gets them, what are they worth, and do they lead anywhere?

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  • Booth, Alison L.
  • Francesconi, Marco
  • Frank, Jeff

Abstract

In Britain about 7% of male employees and 10% of female employees are in temporary jobs. In contrast to much of continental Europe, this proportion has been relatively stable over the 1990s. Using data from the British Household Panel Survey, we find that, on average, temporary workers report lower levels of job satisfaction, receive less work-related training, and are less well-paid than their counterparts in permanent employment. We find some evidence that temporary jobs are a stepping stone to permanent employment. We find some evidence that temporary jobs are a stepping stone to permanent work, although this transition takes between 18 months and three and a half years depending on contract type (seasonal or fixed term) and gender. Moreover, the wage growth penalty associated with experience of seasonal jobs is quite high, and it is likely that workers experiencing such jobs early in their working lives will never catch up. But experience of fixed-term contracts may lead to high wage growth if the workers move to permanent full-time jobs. This is because workers (especially women) who had such contracts enjoy high returns to (experience capital) once they acquire a permanent job.

Suggested Citation

  • Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary jobs: who gets them, what are they worth, and do they lead anywhere?," ISER Working Paper Series 2000-13, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2000-13
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    File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2000-13.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Irma Mooi-Reci & Ronald Dekker, 2015. "Fixed-Term Contracts: Short-Term Blessings or Long-Term Scars? Empirical Findings from the Netherlands 1980–2000," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 112-135, March.
    3. Bardasi, Elena & Francesconi, Marco, 2000. "The Effect of Non-Standard Employment on Mental Health in Britain," IZA Discussion Papers 232, Institute for the Study of Labor (IZA).
    4. Booth, Alison L. & Francesconi, Marco, 2000. "Collectivism versus individualism: performance-related pay and union coverage for non-standard workers in Britain," ISER Working Paper Series 2000-35, Institute for Social and Economic Research.
    5. Domenico Tabasso, 2011. "Temporary Contract and Monopsony Power in the UK Labour Market," Melbourne Institute Working Paper Series wp2011n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. RenÈ B–heim & Mark P. Taylor, 2003. "Option Or Obligation? The Determinants Of Labour Supply Preferences In Britain," Manchester School, University of Manchester, vol. 71(2), pages 113-131, March.
    7. Boheim, Rene & Taylor, Mark P., 2002. "The search for success: do the unemployed find stable employment?," Labour Economics, Elsevier, vol. 9(6), pages 717-735, December.
    8. 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.
    9. Bradley, Steve & Crouchley, Rob & Oskrochi, Reza, 2003. "Social exclusion and labour market transitions: a multi-state multi-spell analysis using the BHPS," Labour Economics, Elsevier, vol. 10(6), pages 659-679, December.
    10. Ferrari, Filippo, 2011. "Lo sviluppo delle competenze nei contesti precari
      [Skills development in precariousness: the dark side of flexibility?]
      ," MPRA Paper 33284, University Library of Munich, Germany.
    11. Schwander, Hanna, 2015. "Labor market risks in times of welfare state transformation," TranState Working Papers 192, University of Bremen, Collaborative Research Center 597: Transformations of the State.
    12. Karabchuk Tatiana, 2009. "Determinants of temporary employment for men and women in Russia," EERC Working Paper Series 09/11e, EERC Research Network, Russia and CIS.
    13. Dimitri Paolini & Juan de Tena, 2012. "Short or long-term contract? Firm’s optimal choice," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(1), pages 1-18, February.
    14. Luca Nunziata & Stefano Staffolani, 2001. "On Short-Term Contracts Regulations," Economics Papers 2001-W7, Economics Group, Nuffield College, University of Oxford.
    15. Wallette, Mårten, 2005. "Temporary Jobs and On-the-Job Training in Sweden - A Negative Nexus?," Working Papers 2005:13, Lund University, Department of Economics.
    16. Ramos, Xavier, 2001. "The dynamics of individual male earnings in Great Britain: 1991-1999," ISER Working Paper Series 2001-15, Institute for Social and Economic Research.
    17. José Antonio Ariza Montes, 2008. "La estabilidad laboral en Andalucía: un análisis comparado entre hombres y mujeres mediante un modelo de regresión logística," Economic Working Papers at Centro de Estudios Andaluces E2008/06, Centro de Estudios Andaluces.
    18. 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.
    19. Emanuela Ghignoni, 2006. "Human capital, unemployment, and probability of transition to permanent employment in the Italian regional labour markets," Working Papers 93, University of Rome La Sapienza, Department of Public Economics.
    20. repec:ksp:journ1:v:4:y:2017:i:1:p:79-87 is not listed on IDEAS
    21. Tatiana KARABCHUK, 2011. "Temporary employment in Russia: why mostly men?," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 10(1), pages 42-60.
    22. D'Addio, Anna Cristina & Rosholm, Michael, 2005. "Exits from temporary jobs in Europe: A competing risks analysis," Labour Economics, Elsevier, vol. 12(4), pages 449-468, August.

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