Temporary contracts' transitions: the role of training and institutions

Sara Serra

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: Despite recent reforms, labour market segmentation is still a marked feature of several European countries. This work empirically analyses transitions out of temporary contracts, by means of a discrete duration model, with a particular focus on human capital features, labour market protection and their interaction. Transitions to open-ended contracts with the same or with a new employer are considered separately, as well as transitions to joblessness, based on data for ten European countries taken from the European Community Household Panel. Conclusions suggest that firm training policies are more relevant for intra-firm transitions, while worker characteristics are more determinant for inter-firm transitions. Labour market regulation plays a significant role in what concerns transitions to open-ended contracts, but not to joblessness, particularly in strongly segmented labour markets. In countries characterized by this type of labour market institutions, human capital features assume an increased relevance, and firm provided training may reduce the influence of the strictness of labour market regulations on the conversion of temporary contracts into open-ended.

JEL-codes: E24 J24 J41 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-hrm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ptu:wpaper:w201611

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