IDEAS home Printed from
   My bibliography  Save this paper

The Causes And Consequences Of Temporary Jobs In Spain: A Theoretical-Empirical Approach


  • Antoni Cunyat

    () (Universitat de València)

  • Elena Casquel

    () (Universidad Miguel Hernández)


This paper analyzes the dynamics of temporary jobs in a labor market characterized by worker heterogeneity and employment protection. We argue that segmentation in the labor market arises endogenously from the heterogeneity of workers. In this sense, we show the existence of two opposite dynamics of temporary contracts: for some type of workers temporary jobs act as stepping stones to permanent jobs, whereas other type of workers get stuck in temporary jobs. Using microdata on labor market transitions for Spain, we test and confirm the model's prediction obtaining that for more educated workers temporary contracts serve as stepping stone. By contrast, young workers, women, less educated workers and ''bad history'' workers seem to experiment a penalty and temporary contracts seem to be dead-end jobs. Moreover, we test the ''screening device hypothesis'' by introducing unobserved heterogenity. We obtain that the transition into permanency depends exclusively on the observed characteristics of workers (education, past labor history, etc). En el presente trabajo se analiza el papel jugado por los contratos temporalescomo puerta de entrada a contratos permanentes y otros estados utilizando una muestraextraída de las cinco primeras olas del Panel Europeo de Hogares. Nuestro principalresultado consiste en que hay determinados colectivos de trabajadores que permanecen“atrapados” en contratos temporales. Concretamente, trabajadores con menores niveleseducativos no sólo tienen menos probabilidades de conseguir un contrato permanentesino que además es más probable que acaben desempleados o en otro contrato temporal.Mujeres y trabajadores jóvenes tienen una alta probabilidad de acabar desempleados. Elpasado laboral de los empleados también juega un papel importante en todas lastransiciones. En este sentido, aquellos trabajadores que hayan experimentado desempleode larga duración es muy probable que acaben otra vez desempleados.

Suggested Citation

  • Antoni Cunyat & Elena Casquel, 2004. "The Causes And Consequences Of Temporary Jobs In Spain: A Theoretical-Empirical Approach," Working Papers. Serie EC 2004-18, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasec:2004-18

    Download full text from publisher

    File URL:
    File Function: Fisrt version / Primera version, 2004
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. J. Ignacio García-Pérez & Yolanda F. Rebollo Sanz, 2009. "The use of permanent contracts across Spanish regions: Do regional wage subsidies work?," Investigaciones Economicas, Fundación SEPI, vol. 33(1), pages 97-130, January.

    More about this item


    contratos temporales; contratos permanentes; desempleo; transición. temporary contracts; permanent contracts; unemployment; transitions.;

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ivi:wpasec:2004-18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.