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Short-term contracts: trap or stepping stone toward stable employment?

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Listed:
  • P. GIVORD

    (Insee)

  • L. WILNER

    (Crest)

Abstract

This paper focuses on labor market transitions and especially on those involving fixed-term contracts. Our contribution is twofold: first, we provide an accurate measure of labor market transitions and focus on transitions from fixed-term contracts to open-ended contracts or unemployment (dealing with the "stepping-stone or dead-end" question) ; second, we analyze the potential incentive effect of fixed-term contracts on “effort”. To deal with unobserved heterogeneity, we use a dynamic multinomial logit with fixed effects. We estimate the model on the French Labor Force Survey (2002-2008) which provides detailed information on quarterly transitions. We construct an indicator of effort for fixed-term workers based on a “compared” weekly working time. We find that fixed-term contracts provide slightly better perspectives than unemployment. However, we don't find evidence of any significant impact of “working more” on the probability of getting an open-ended contract.

Suggested Citation

  • P. Givord & L. Wilner, 2009. "Short-term contracts: trap or stepping stone toward stable employment?," Documents de Travail de l'Insee - INSEE Working Papers g2009-04, Institut National de la Statistique et des Etudes Economiques.
    • Handle: RePEc:nse:doctra:g2009-04
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    File URL: https://www.bnsp.insee.fr/ark:/12148/bc6p06zqzq6/f1.pdf
    File Function: Document de travail de la DESE numéro G2009/04
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    More about this item

    Keywords

    Fixed-term contracts; effort; transitions;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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