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Transitions from Casual Employment in Australia

Author

Listed:
  • Hielke Buddelmeyer

    (Institute of Applied Economic and Social Research, The University of Melbourne)

  • Mark Wooden

    () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

A distinctive feature of the Australian labour market is a high incidence of casual employment. Almost 27 percent of Australian employees in 2006 were classified as employed on a casual basis, an alarmingly high proportion given the strong claims often made about the harmful effects that casual employment can have on future employment prospects. But are such claims justified? This paper uses longitudinal data from the HILDA Survey to examine the extent to which casual employees are able to access non-casual jobs in the future and to contrast the experiences of casual employees with that of other labour market participants. A dynamic MNL model of labour market states is estimated which reveals high annual rates of mobility from casual employment into non-casual employment. Further, among men, casual employees are found to be far more likely to make the transition into non-casual employment than otherwise comparable unemployed job seekers. For women, however, this is not the case.

Suggested Citation

  • Hielke Buddelmeyer & Mark Wooden, 2008. "Transitions from Casual Employment in Australia," Melbourne Institute Working Paper Series wp2008n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2008n07
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2008n07.pdf
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    References listed on IDEAS

    as
    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. Guell, Maia & Petrongolo, Barbara, 2007. "How binding are legal limits? Transitions from temporary to permanent work in Spain," Labour Economics, Elsevier, vol. 14(2), pages 153-183, April.
    3. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
    4. Bertil Holmlund & Donald Storrie, 2002. "Temporary Work In Turbulent Times: The Swedish Experience," Economic Journal, Royal Economic Society, vol. 112(480), pages 245-269, June.
    5. Nicole Watson & Mark Wooden, 2004. "The HILDA Survey Four Years On," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(3), pages 343-349, September.
    6. Mark Wooden & Nicole Watson, 2007. "The HILDA Survey and its Contribution to Economic and Social Research (So Far)," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 208-231, June.
    7. Anh T. Le & Paul W. Miller, 1998. "The ABS Survey of Employment and Unemployment Patterns," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(3), pages 290-297.
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    Citations

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    Cited by:

    1. Danielle Venn, 2009. "Legislation, Collective Bargaining and Enforcement: Updating the OECD Employment Protection Indicators," OECD Social, Employment and Migration Working Papers 89, OECD Publishing.
    2. repec:bla:ecorec:v:92:y:2016:i:299:p:517-547 is not listed on IDEAS
    3. Jeff Borland & David Johnston, 2010. "How Does a Worker's Labour Market History Affect Job Duration?," Melbourne Institute Working Paper Series wp2010n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Harris, M.N. & Zhao, X. & Zucchelli, E., 2016. "The dynamics of health and labour market transitions at older ages: evidence from a multi-state model," Health, Econometrics and Data Group (HEDG) Working Papers 16/30, HEDG, c/o Department of Economics, University of York.

    More about this item

    Keywords

    Casual employment; HILDA Survey; Labour market transitions; Australia; Dynamic mixed multinomial logit;

    JEL classification:

    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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