Wage Growth Implications of Fixed-Term Employment: An Analysis by Contract Duration and Job Mobility

Amuedo-Dorantes, Catalina and Serrano-Padial, Ricardo ()
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Amuedo-Dorantes, Catalina: Department of Economics, San Diego State University
Serrano-Padial, Ricardo: Department of Economics, University of California, San Diego

No 16, Working Papers from San Diego State University, Department of Economics

Abstract: Focusing on Spain, where fixed-term workers account for a third of the wage and salary workforce, we examine the wage growth implications of fixed-term employment of varying duration while distinguishing between wage growth occurring on-the-job versus via job mobility. Wage growth among employees with indefinite work contracts largely occurs via job mobility, whereas fixed-term workers gain via job mobility as well as on-the-job. Consequently, job stayers with fixed-term contracts a year ago narrow their wage gap with respect to similar counterparts with indefinite-term contracts. Yet, this effect is solely driven by the 10.5 percentage points higher wage growth experienced by fixed-term workers with 6-months contracts able to keep their jobs beyond their initial contract period. Given the limited number of short-term temporary workers in those circumstances, the overall wage gap between past fixed-term and indefinite-term workers is unlikely to vanish in the near future.

Date: 2006-06
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Persistent link: http://EconPapers.repec.org/RePEc:sds:wpaper:0016

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