Transitions into permanent employment in Spain: an empirical analysis for young workers Articles uri icon

publication date

  • March 2011

start page

  • 103

end page

  • 143

issue

  • 1

volume

  • 49

International Standard Serial Number (ISSN)

  • 0007-1080

Electronic International Standard Serial Number (EISSN)

  • 1467-8543

abstract

  • This article analyses the transitions into permanent employment of a sample of young temporary employees in Spain for the period 1996&-2003. For this purpose, we apply multiple-spell duration techniques to a longitudinal dataset of temporary workers obtained from Social Security registers. Our main findings are as follows. First, the transitions from a temporary contract into unemployment and into another temporary contract are very high when compared with transitions into permanent employment. Second, the entry into permanent employment — although slightly increasing with tenure at the temporary contract — is very low; the only exception is that of semi-skilled and unskilled individuals, who are particularly likely to enter into permanent employment at the 24th and the 36th month of tenure (respectively). Third, we find that there exists a substantial proportion of workers with unobservable characteristics that make them show high exit rates from temporary employment and, at the same time, a rapid exit from unemployment — while the remaining individuals exit from unemployment more slowly, particularly those who are receiving unemployment benefits.

keywords

  • unemployment duration : temporary employment ; labor-market ; jobs ; models