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Transitions from Casual Employment in Australia

  • 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)

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.

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2008n07.

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Length: 24 pages
Date of creation: May 2008
Date of revision:
Handle: RePEc:iae:iaewps:wp2008n07
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
Web page: http://www.melbourneinstitute.com/
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  1. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  2. 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, 09.
  3. 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.
  4. Bertil Holmlund & Donald Storrie, 2002. "Temporary Work in Turbulent Times: The Swedish Experience," CESifo Working Paper Series 671, CESifo Group Munich.
  5. Jeffrey M Wooldridge, 2002. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," CeMMAP working papers CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  6. Catalina Amuedo-Dorantes, 2000. "Work transitions into and out of involuntary temporary employment in a segmented market: Evidence from Spain," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
  7. 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, 06.
  8. 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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