The Effect of Non-Permanent Contractual Employment on Financial Hardship

Neha Swami ()
Additional contact information
Neha Swami: Melbourne Institute: Applied Economic & Social Research and Department of Economics, The University of Melbourne

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: This study uses longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey to examine the difference in the experience of financial hardship between permanent and two forms of non-permanent employment:-fixed-term and casual employment, separately for men and women. It estimates multivariate ordered logit fixed-effects models that account for time-invariant unobserved heterogeneity, common macroeconomic shocks and a rich set of individual level characteristics, and finds that for both men and women, compared to permanent employment, casual employment is associated with increased financial hardship. Fixed-term employment is not associated with increased financial hardship for either men or women. For men, the strong positive association between casual employment and financial hardship is largely explained by fewer hours of work and a higher vulnerability to employment shocks (job loss and job change). For women, particularly those with caring responsibilities, working fewer hours and experiencing employment shocks (job loss and job change) explain some of the association between casual employment and financial hardship, but even after allowing for these factors casual employment per se continues to have a strong positive association with the experience of financial hardship.

Keywords: Non-permanent employment; financial hardship; HILDA Survey; blow-up and cluster fixed-effects ordered-logit model (search for similar items in EconPapers)
JEL-codes: J3 J4 (search for similar items in EconPapers)
Pages: 49pp
Date: 2017-08
New Economics Papers: this item is included in nep-lma
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://melbourneinstitute.unimelb.edu.au/__data/as ... 469628/wp2017n20.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2017n20

Access Statistics for this paper

More papers in Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Sheri Carnegie ().