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

  • 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)

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.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2005:18.

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Length: 37 pages
Date of creation: 28 Jun 2005
Date of revision:
Handle: RePEc:hhs:ifauwp:2005_018
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  1. Zijl, Marloes & van den Berg, Gerard J. & Heyma, Arjan, 2004. "Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration until Regular Work," IZA Discussion Papers 1241, Institute for the Study of Labor (IZA).
  2. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc.
  3. Peter R. Mueser & Carolyn J. Heinrich & Kenneth Troske, 2003. "Welfare to Temporary Work: Implications for Labor Market Outcomes," Working Papers 0308, Department of Economics, University of Missouri.
  4. Johansson, Per & Martinson, Sara, 2000. "The effect of increased employer contacts within a labour market training program," Working Paper Series 2000:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  5. Jeff Borland & Yi-Ping Tseng, 2004. "Does 'Work for the Dole' Work?," Melbourne Institute Working Paper Series wp2004n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  6. V. Joseph Hotz & Guido W. Imbens & Julie H. Mortimer, 1999. "Predicting the Efficacy of Future Training Programs Using Past Experiences," NBER Technical Working Papers 0238, National Bureau of Economic Research, Inc.
  7. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
  8. Carling, Kenneth & Larsson, Laura, 2005. "Does early intervention help the unemployed youth?," Labour Economics, Elsevier, vol. 12(3), pages 301-319, June.
  9. Bertil Holmlund & Donald Storrie, 2002. "Temporary Work In Turbulent Times: The Swedish Experience," Economic Journal, Royal Economic Society, vol. 112(480), pages F245-F269, June.
  10. Alison L Booth & Juan J. Dolado & Jeff Frank, 2002. "Symposium On Temporary Work Introduction," Economic Journal, Royal Economic Society, vol. 112(480), pages F181-F188, June.
  11. 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.
  12. Larsson, Laura & Nordström Skans, Oskar, 2004. "Early indication of program performance: The case of a Swedish temporary employment program," Working Paper Series 2004:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  13. 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.
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