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TEMPORARY CONTRACTS, EMPLOYMENT PROTECTION AND SKILL: AN APPLICATION TO SPAIN *
Author(s) -
CASQUEL ELENA,
CUNYAT ANTONI
Publication year - 2011
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2011.02226.x
Subject(s) - unemployment , economics , productivity , labour economics , demographic economics , survey data collection , contrast (vision) , longitudinal data , economic growth , statistics , demography , mathematics , artificial intelligence , sociology , computer science
In this paper we explain the different conversion patterns of temporary contracts by the impact of employment protection in combination with differences in productivity between workers. We use longitudinal survey data from individuals to estimate a competing risks model with multi‐spells for Spain. The model includes correlated unobserved determinants in the transition rates to deal with selectivity. We find that workers with higher levels of education have a stronger probability of finding a permanent job. In contrast, low‐educated workers have a stronger probability of ending in unemployment or another temporary contract. Furthermore, we show the importance of employment protection in affecting the threshold level above which workers gain access to a permanent contract.