SOEPpapers on Multidisciplinary Panel Data Research (number 543-2013) by Michael Gebel (University of Mannheim) published by SOEP
Abstract
While many previous studies on temporary work have found disadvantages for temporary
workers as compared to workers with a permanent contract, this study compares temporary
work to the alternative of unemployment. Specifically, this paper investigates the potential
integrative power of taking up a temporary job for unemployed workers as compared to the
counterfactual situation of remaining unemployed and searching for another job.
Applying a
dynamic propensity-score matching approach based on British, (West and East) German, and
Swiss panel data during the period of 1991–2009, it is shown that taking up a temporary job
increases the employment chances during the subsequent five years in (West and East)
Germany and the UK.
Moreover, the chances of having a permanent contract remain higher
and a persistent wage premium can be found during the subsequent five years of the career.
Advantages of taking up a temporary job are slightly stronger in West Germany compared to
East Germany, where temporary contracts are often based on public job creation measures
with limited integration potential.
Neither long-run advantages nor disadvantages of taking up
a temporary job can be found in the case of the flexible Swiss labour market
JEL classification: C14, C41, J41, J60, J64
Full text (PDF 32pp)
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