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The Effect of Temporary Contracts on Human Capital Accumulation in Chile

  • Susana Carpio
  • David Giuliodori
  • Graciana Rucci
  • Rodolfo Stucchi

This paper studies the probability of receiving employer-paid training and other training independent of who finances it for permanent and temporary workers in Chile. The authors use data from the Social Protection Survey, EPS, allowing them to construct a panel of workers with information from 2002, 2004, 2006, and 2009. The results suggest that having a temporary contract in Chile reduces the probability of receiving employer-paid training. The survey also finds that this deficit is not compensated by other types of training. This finding is important for two reasons. First, the proportion of temporary workers that obtain an open-ended contract is low. Second, the productivity growth in Chile after 1997 is practically zero and human capital accumulation is one of the factors that might help to recover the path of productivity growth.

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Paper provided by Inter-American Development Bank in its series IDB Publications (Working Papers) with number 35358.

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Date of creation: Mar 2011
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Handle: RePEc:idb:brikps:35358
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  1. Güell, Maia & Petrongolo, Barbara, 2003. "How Binding are Legal Limits? Transitions from Temporary to Permanent Work in Spain," CEPR Discussion Papers 3931, C.E.P.R. Discussion Papers.
  2. Gagliarducci, Stefano, 2005. "The dynamics of repeated temporary jobs," Labour Economics, Elsevier, vol. 12(4), pages 429-448, August.
  3. Jan Sauermann, 2006. "Who Invests in Training if Contracts are Temporary? - Empirical Evidence for Germany Using Selection Correction," IWH Discussion Papers 14, Halle Institute for Economic Research.
  4. 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).
  5. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2003. "Training in Europe," IZA Discussion Papers 933, Institute for the Study of Labor (IZA).
  6. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
  7. Portugal, Pedro & Varejão, José, 2009. "Why Do Firms Use Fixed-Term Contracts?," IZA Discussion Papers 4380, Institute for the Study of Labor (IZA).
  8. Almeida, Rita K. & Aterido, Reyes, 2010. "Investment in job training : why are SMES lagging so much behind ?," Policy Research Working Paper Series 5358, The World Bank.
  9. Andrew Gelman, 2009. "A statistician’s perspective on “Mostly Harmless Econometrics: An Empiricist's Companion”, by Joshua D. Angrist and Jorn-Steffen Pischke," Stata Journal, StataCorp LP, vol. 9(2), pages 315-320, June.
  10. 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.
  11. 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.
  12. Cecilia Albert & Carlos García-Serrano & Virginia Hernanz, 2004. "Firm-provided training and temporary contracts," Spanish Economic Review, Springer, vol. 7(1), pages 67-88, January.
  13. Wallette, Mårten, 2005. "Temporary Jobs and On-the-Job Training in Sweden - A Negative Nexus?," Working Papers 2005:13, Lund University, Department of Economics.
  14. Almeida, Rita & Aterido, Reyes, 2008. "The incentives to invest in job training : do strict labor codes influence this decision?," Social Protection Discussion Papers 46189, The World Bank.
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