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Is a Temporary Job Better Than Unemployment? A Cross-country Comparison Based on British, German, and Swiss Panel Data
Author(s) -
Michael Gebel
Publication year - 2013
Publication title -
journal of contextual economics – schmollers jahrbuch
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.114
H-Index - 1
eISSN - 2568-762X
pISSN - 2568-7603
DOI - 10.3790/schm.133.2.143
Subject(s) - german , unemployment , matching (statistics) , wage , labour economics , panel data , economics , temporary work , propensity score matching , demographic economics , work (physics) , contrast (vision) , econometrics , engineering , macroeconomics , geography , computer science , medicine , archaeology , mechanical engineering , pathology , artificial intelligence
While many previous studies on temporary work have found disadvantages for temporary workers compared to workers with a permanent contract, this study makes the comparison to the alternative of unemployment. Applying a dynamic propensity-score matching approach based on British, German, and Swiss panel data, it is shown that taking up a temporary job increases the employment chances during the subsequent five years in Germany and the United Kingdom. Moreover, the chances of having a permanent contract remain higher and a persistent wage premium can be found. In contrast, no long-run advantages can be found in the case of the flexible Swiss labour market

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