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Flexible contracts and human capital investments

Listed author(s):
  • Fouarge, D.

    (Research Centre for Educ and Labour Mark)

  • de Grip, A.

    (Research Centre for Educ and Labour Mark)

  • Smits, W.

    (External organisation)

  • de Vries, M.R.

    (External organisation)

As suggested by human capital theory, workers with flexible contracts participate lessoften in training than those with permanent contracts. We find that this is merely dueto the fact that flexworkers receive less employer–funded training, a gap they can onlypartly compensate for by their own training investments. Flexworkers particularlyparticipate less in firm–specific training that is meant to keep up with new skilldemands than workers with permanent contracts. However, for those who participatein employer–funded firm–specific training, a temporary contract appears to facilitatethe transition to a permanent contract with the same employer. However, this doesnot hold for participation in self–paid training. This training, which is usually generaltraining, does not help in finding a better job.

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Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 051.

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Date of creation: 01 Jan 2011
Handle: RePEc:unm:umamet:2011051
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  4. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
  5. Lynch, Lisa M, 1993. "The Economics of Youth Training in the United States," Economic Journal, Royal Economic Society, vol. 103(420), pages 1292-1302, September.
  6. 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.
  7. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 1-19, January.
  8. Philip Murphy & Paul L. Latreille & Melanie Jones & David Blackaby, 2008. "Is There a Public Sector Training Advantage? Evidence from the Workplace Employment Relations Survey," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 674-701, December.
  9. Acemoglu, Daron & Pischke, Jörn-Steffen, 1996. "Why do Firms Train? Theory and Evidence," CEPR Discussion Papers 1460, C.E.P.R. Discussion Papers.
  10. Stevens, Margaret, 1994. "An Investment Model for the Supply of Training by Employers," Economic Journal, Royal Economic Society, vol. 104(424), pages 556-570, May.
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  12. Edward P. Lazear, 2009. "Firm-Specific Human Capital: A Skill-Weights Approach," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 914-940, October.
  13. Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-1158, December.
  14. Allen Jim & Grip Andries de, 2007. "Skill Obsolescence, Lifelong Learning and Labor Market Participation," ROA Research Memorandum 006, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  15. Mirko Draca & Colin Green, 2004. "The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 609-625, November.
  16. Crawford, Vincent P, 1988. "Long-term Relationships Governed by Short-term Contracts," American Economic Review, American Economic Association, vol. 78(3), pages 485-499, June.
  17. Filipe Almeida-Santos & Karen Mumford, "undated". "Employee Training and Wage Compression in Britain," Discussion Papers 04/11, Department of Economics, University of York.
  18. José Arranz & Carlos García-Serrano & Luis Toharia, 2010. "The Influence of Temporary Employment on Unemployment Exits in a Competing Risks Framework," Journal of Labor Research, Springer, vol. 31(1), pages 67-90, March.
  19. Bierings Harry & Cörvers Frank & Montizaan Raymond & Vries Robert de, 2009. "Beroepenmobiliteit: Bruikbaarheid longitudinale gegevens Enquête Beroepsbevolking," ROA Technical Report 002, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  20. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  21. Mark A. Loewenstein & James R. Spletzer, 1997. "Delayed Formal on-the-job Training," ILR Review, Cornell University, ILR School, vol. 51(1), pages 82-99, October.
  22. Dekker, Ronald, 2007. "Non-standard employment and mobility in the Netherlands," MPRA Paper 7385, University Library of Munich, Germany.
  23. Jonker N. & Grip A. de, 1999. "Do employees with Flexible Contracts receive less Training?," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  24. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
  25. Katz, Eliakim & Ziderman, Adrian, 1990. "Shared investment in general training : the role of information," Policy Research Working Paper Series 535, The World Bank.
  26. Cecilia Albert & Carlos García-Serrano & Virginia Hernanz, 2004. "Firm-provided training and temporary contracts," Spanish Economic Review, Springer;Spanish Economic Association, vol. 7(1), pages 67-88, January.
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