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Are Casual Jobs a Freeway to Permanent Employment?

  • Chalmers, J.
  • Kalb, G.

This study examines whether casual work can shorten the time taken to move from unemployment into permanent work using longitudinal data from the Survey of Employment and Unemployment Patterns. The analysis is based on comparison of the transition rate from unemployment to permanent work with the combined transition rates of unemployment to casual work and casual work to permanent work. Hazard rate models are used to estimate each of the transition rates. The models include observed and unobserved heterogeneity and allow for correlation between the transition rates. The evidence presented suggests that accepting casual work is beneficial for some unemployed people in their search for permanent work.

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File URL: http://www.buseco.monash.edu.au/ebs/pubs/wpapers/2000/wp8-00.pdf
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Paper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number 8/00.

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Length: 35 pages
Date of creation: Jul 2000
Date of revision:
Handle: RePEc:msh:ebswps:2000-8
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  1. Lubyova, M. & van Ours, J.C., 1998. "Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic," Discussion Paper 1998-127, Tilburg University, Center for Economic Research.
  2. Dale T. Mortensen, 1977. "Unemployment insurance and job search decisions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(4), pages 505-517, July.
  3. Gerard J. van den Berg & Anders Holm & Jan C. van Ours, 2002. "Do stepping-stone jobs exist? Early career paths in the medical profession," Journal of Population Economics, Springer, vol. 15(4), pages 647-665.
  4. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
  5. Gaston, Noel & Timcke, David, 1999. "Do Casual Workers Find Permanent Full-Time Employment? Evidence from the Australian Youth Survey," The Economic Record, The Economic Society of Australia, vol. 75(231), pages 333-47, December.
  6. Brooks, Clive & Volker, Paul, 1986. "The Probability of Leaving Unemployment: The Influence of Duration, Destination and Demographics," The Economic Record, The Economic Society of Australia, vol. 62(178), pages 296-309, September.
  7. Chapman, B.J. & Smith, P.N., 1993. "Predicting the Long-Term Unemployed: A primer for the Commonwealth Employment Service," CEPR Discussion Papers 285, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  8. Paul Bingley & Ian Walker, 1996. "Household Unemployment and the Labour Supply of Married Women," Keele Department of Economics Discussion Papers (1995-2001) 96/20, Department of Economics, Keele University.
  9. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213.
  10. Julie Hotchkiss, 1999. "The effect of transitional employment on search duration: A selectivity approach," Atlantic Economic Journal, International Atlantic Economic Society, vol. 27(1), pages 38-52, March.
  11. Dex, Shirley, et al, 1995. "Cross-National Comparisons of the Labour Force Participation of Women Married to Unemployed Men," Oxford Economic Papers, Oxford University Press, vol. 47(4), pages 611-35, October.
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