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Transitions into Permanent Employment in Spain: An Empirical Analysis for Young Workers
Author(s) -
GarcíaPérez J. Ignacio,
MuñozBullón Fernando
Publication year - 2011
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.2009.00750.x
Subject(s) - unemployment , unobservable , spell , duration (music) , labour economics , demographic economics , social security , sample (material) , economics , temporary work , displaced workers , business , economic growth , sociology , econometrics , work (physics) , literature , chromatography , anthropology , engineering , market economy , art , mechanical engineering , chemistry
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.