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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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  1. Crawford, Vincent P, 1988. "Long-term Relationships Governed by Short-term Contracts," American Economic Review, American Economic Association, vol. 78(3), pages 485-99, June.
  2. Andrea Bassanini & Alison Booth & Giorgio Brunello & Maria De Paola & Edwin Leuven, 2006. "Workplace training in Europe," Post-Print halshs-00120601, HAL.
  3. Daniel Parent, 1995. "Wages and Mobility: The Impact of Employer-Provided Training," CIRANO Working Papers 95s-27, CIRANO.
  4. 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.
  5. Stevens, Margaret, 1994. "An Investment Model for the Supply of Training by Employers," Economic Journal, Royal Economic Society, vol. 104(424), pages 556-70, May.
  6. Filipe Almeida-Santos & Karen Mumford, . "Employee Training and Wage Compression in Britain," Discussion Papers 04/11, Department of Economics, University of York.
  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. 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).
  9. 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.
  10. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages F189-F213, June.
  11. 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.
  12. repec:oup:qjecon:v:113:y:1998:i:1:p:78-118 is not listed on IDEAS
  13. Cecilia Albert & Carlos García-Serrano & Virginia Hernanz, 2004. "Firm-provided training and temporary contracts," Spanish Economic Review, Springer, vol. 7(1), pages 67-88, January.
  14. Lynch, Lisa M, 1993. "The Economics of Youth Training in the United States," Economic Journal, Royal Economic Society, vol. 103(420), pages 1292-302, September.
  15. repec:oup:qjecon:v:105:y:1990:i:2:p:561-74 is not listed on IDEAS
  16. Pischke, J-S, 1996. "Continuous Training in Germany," Working papers 96-28, Massachusetts Institute of Technology (MIT), Department of Economics.
  17. 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).
  18. 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).
  19. 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.
  20. Dekker, Ronald, 2007. "Non-standard employment and mobility in the Netherlands," MPRA Paper 7385, University Library of Munich, Germany.
  21. repec:oup:qjecon:v:116:y:2001:i:4:p:1409-1448 is not listed on IDEAS
  22. 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.
  23. 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.
  24. Mark A. Loewenstein & James R. Spletzer, 1997. "Delayed formal on-the-job training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(1), pages 82-99, October.
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