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Stepping-stones or dead-ends? An analysis of Swedish replacement contracts

Author

Listed:
  • Larsson, Laura

    (SNS - Studieförbundet Näringsliv och Samhälle)

  • Lindqvist, Linus

    () (IFAU - Institute for Labour Market Policy Evaluation)

  • Nordström Skans, Oskar

    () (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

The paper studies if temporary jobs in the form of fixed-term replacement contracts reduce the risk of future unemployment among job-seekers. Using exact matching on labour market history and personal characteristics we find positive effects of the replacement contract on future labour market status. We also find that the longer the replacement contract the higher the probability of having an open ended contract at the same site 2–2.5 years after the start of the contract. No effect of the length is found on unemployment, employment or wages. Overall, the results suggest that receiving a fixed term contract reduces the risk of future unemployment, and that a longer contract increases the position within the workplace but not on the market in general.

Suggested Citation

  • Larsson, Laura & Lindqvist, Linus & Nordström Skans, Oskar, 2005. "Stepping-stones or dead-ends? An analysis of Swedish replacement contracts," Working Paper Series 2005:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2005_018
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    File URL: http://www.ifau.se/upload/pdf/se/2005/wp05-18.pdf
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    References listed on IDEAS

    as
    1. Forslund, Anders & Johansson, Per & Lindqvist, Linus, 2004. "Employment subsidies - A fast lane from unemployment to work?," Working Paper Series 2004:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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    6. Marloes de Graaf-Zijl & Gerard van den Berg & Arjan Heyma, 2011. "Stepping stones for the unemployed: the effect of temporary jobs on the duration until (regular) work," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 107-139, January.
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    Citations

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    Cited by:

    1. Kyyrä, Tomi, 2010. "Partial unemployment insurance benefits and the transition rate to regular work," European Economic Review, Elsevier, vol. 54(7), pages 911-930, October.
    2. Boockmann, Bernhard & Hagen, Tobias, 2008. "Fixed-term contracts as sorting mechanisms: Evidence from job durations in West Germany," Labour Economics, Elsevier, vol. 15(5), pages 984-1005, October.
    3. Zierahn, Ulrich, 2008. "Reform der schwedischen Arbeitsmarkt- und Tarifpolitik," HWWI Research Papers 1-14, Hamburg Institute of International Economics (HWWI).
    4. Cockx, Bart & Robin, Stéphane R. & Goebel, Christian, 2006. "Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium," IZA Discussion Papers 2432, Institute for the Study of Labor (IZA).
    5. Kyyrä, Tomi & Parrotta, Pierpaolo & Rosholm, Michael, 2013. "The effect of receiving supplementary UI benefits on unemployment duration," Labour Economics, Elsevier, vol. 21(C), pages 122-133.
    6. Nordström Skans, Oskar & Liljeberg, Linus, 2005. "Causal effects of subsidized career breaks," Working Paper Series 2005:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Hägglund, Pathric, 2006. "Are there pre-programme effects of Swedish active labour market policies? Evidence from three randomised experiments," Working Paper Series 2006:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    8. Gianna Barbieri & Paolo Sestito, 2008. "Temporary Workers in Italy: Who Are They and Where They End Up," LABOUR, CEIS, vol. 22(1), pages 127-166, March.

    More about this item

    Keywords

    Unemployment; temporary employment; matching;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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