When Does the Stepping‐Stone Work? Fixed‐Term Contracts Versus Temporary Agency Work in Changing Economic Conditions

Pauline Givord () and Lionel Wilner
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Pauline Givord: INSEE - Institut national de la statistique et des études économiques (INSEE)

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Abstract: This paper emphasizes differences among short‐term contracts in terms of career prospects. Using French data over the 2002–2010 period, we rely on a dynamic model with fixed effects to disentangle state dependence from unobserved heterogeneity. Although fixed‐term contracts may provide a ‘stepping‐stone' to permanent positions, temporary agency work is hardly better than unemployment in this regard. The Great Recession of 2008 has changed the dynamics on the labor market and amplified the difference between fixed‐term contracts and temporary agency work. For both types of temporary workers, providing overtime work does not significantly increase the transition to permanent employment.

Keywords: Short-term contracts; Panel data; Dynamic models; State dependence; Great Recession; Overtime work (search for similar items in EconPapers)
Date: 2014-05-13
Note: View the original document on HAL open archive server: https://hal.science/hal-04799379v1
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Published in Journal of Applied Econometrics, 2014, 30 (5), pp.787-805. ⟨10.1002/jae.2394⟩

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Related works:
Journal Article: When Does the Stepping‐Stone Work? Fixed‐Term Contracts Versus Temporary Agency Work in Changing Economic Conditions (2015)
Working Paper: Fixed-Term Contracts, Incentives and Effort (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04799379

DOI: 10.1002/jae.2394

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