The flexibility penalty in a long-term perspective
In this paper we study the effect of flexibility on both wages and the likelihood of work stabilisation, by focusing on flexibility when entering the labour market and on periods of career interruption. Our main goal is to evaluate how having entered the labour market with fixed-term contracts or having experienced periods of interruption of work can affect the likelihood of being given a permanent contract and the level of wages received in subsequent jobs. Unlike other works in the existing literature, this study deals with female and male workers separately. The analysis is carried out using a dataset put together by the Istituto per lo Sviluppo della Formazione Professionale dei Lavoratori – ISFOL (Institute for the Development of the Professional Training of Workers) based on a sample of Italian workers. The dataset is representative of the Italian population and contains detailed information on work experience previous to workers’ present occupation with details on types of contracts and causes of career interruptions. In the first part of the paper, we examine density functions of monthly and hourly wages relative to contractual characteristics of first jobs and the number of job changes and work interruptions. In the second part of the paper, we estimate separate earnings functions for the sample of men and women with full-time permanent contracts. We correct for selection in full-time work by estimating a first-stage equation of the probability to have a permanent job and including the Mill’s ratio in the second-stage wage function. Estimates show that flexibility affects men and women differently, both in terms of levels of wages, and the likelihood of accessing permanent jobs. Some differences also emerge with regard to the causes of career interruptions.
|Date of creation:||Mar 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alison L. Booth & Marco Francesconi & Jeff Frank, 2002.
"Temporary Jobs: Stepping Stones or Dead Ends?,"
LABORatorio R. Revelli Working Papers Series
8, LABORatorio R. Revelli, Centre for Employment Studies.
- García-Pérez, J. Ignacio & Muñoz-Bullón, Fernando, 2003.
"Temporary help agencies and occupational mobility,"
DEE - Working Papers. Business Economics. WB
wb034110, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
- van Ours, Jan C., 2004.
"The locking-in effect of subsidized jobs,"
Journal of Comparative Economics,
Elsevier, vol. 32(1), pages 37-55, March.
- Jan C. van Ours, 2002. "The Locking-in Effect of Subsidized Jobs," William Davidson Institute Working Papers Series 474, William Davidson Institute at the University of Michigan.
- van Ours, Jan C., 2002. "The Locking-in Effect of Subsidized Jobs," IZA Discussion Papers 527, Institute for the Study of Labor (IZA).
- van Ours, Jan C, 2002. "The Locking-in Effect of Subsidized Jobs," CEPR Discussion Papers 3489, C.E.P.R. Discussion Papers.
- van Ours, J.C., 2002. "The Locking-In Effect of Subsidized Jobs," Discussion Paper 2002-60, Tilburg University, Center for Economic Research.
- van Ours, J.C., 2004. "The locking-in effect of subsidized jobs," Other publications TiSEM c4fd99a1-4c2f-46c6-9ee2-3, Tilburg University, School of Economics and Management.
- Zijl, Marloes & van den Berg, Gerard J & Heyma, Arjan, 2004.
"Stepping-stones for the unemployed: The effect of temporary jobs on the duration until regular work,"
Working Paper Series
2004:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Marloes de Graaf-Zijl & Gerard van den Berg & Arjan Heyma, 2011. "Stepping stones for the unemployed: the effect of temporary jobs on the duration until (regular) work," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 107-139, January.
- Zijl, Marloes & van den Berg, Gerard J. & Heyma, Arjan, 2004. "Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration until Regular Work," IZA Discussion Papers 1241, Institute for the Study of Labor (IZA).
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Gagliarducci, Stefano, 2005. "The dynamics of repeated temporary jobs," Labour Economics, Elsevier, vol. 12(4), pages 429-448, August.
- Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2005. "Temporary Work Agencies in Italy: A Springboard Toward Permanent Employment?," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(1), pages 1-27, September.
- John T. Addison & Christopher J. Surfield, 2008.
"Atypical Work and Employment Continuity,"
Working Paper Series
12_08, The Rimini Centre for Economic Analysis, revised Jan 2008.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:21064. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.