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Flexible contracts and human capital investments

  • Fouarge Didier
  • Grip Andries de
  • Smits Wendy
  • Vries Robert de

    (ROA rm)

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, Research Centre for Education and the Labour Market (ROA) in its series ROA Research Memorandum with number 013.

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Date of creation: 2011
Date of revision:
Handle: RePEc:unm:umaror:2011013
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  8. 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).
  9. 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.
  10. 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).
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  13. 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.
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  18. Dekker, Ronald, 2007. "Non-standard employment and mobility in the Netherlands," MPRA Paper 7385, University Library of Munich, Germany.
  19. 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).
  20. 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.
  21. 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.
  22. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  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. 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 1147-58, December.
  25. 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).
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