Temporary Employment and Segmentation in the Spanish Labour Market: An Empirical Analysis through the Study of Wage Differentials

María A. Davia and Virginia Hernanz

No 2002-26, Working Papers from FEDEA

Abstract: We intend to add empirical evidence to the already studied field of wage differentials between temporary and permanent workers in Spain. Our aim is to find out which determinants of wage differentials are relevant when explaining such differences. Besides, the endogeneity of such feature (the type of contract) is controlled for. The same exercise is done with two data sets: the ECHP and the Structure of Earnings Survey. Results show that wage differentials between temporary and permanent workers are explained by the differences in the distribution of personal and job characteristics in both groups, but not by differences in the rewards to those characteris.

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