How binding are legal limits? Transitions from temporary to permanent work in Spain

Maia Güell () and Barbara Petrongolo

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: This paper studies the duration pattern of …xed-term contracts and the determinants of their conversion into permanent ones in Spain, where the share of …xed-term employment is the highest in Europe. We estimate a duration model for temporary employment, with competing risks of terminating into permanent employment versus alternative states, and ‡exible duration dependence. We …nd that conversion rates are generally below 10%. Our estimated conversion rates roughly increase with tenure, with a pronounced spike at the legal limit, when there is no legal way to retain the worker on a temporary contract. We argue that estimated di¤erences in conversion rates across categories of workers can stem from di¤erences in worker outside options and thus the power to credibly threat to quit temporary jobs.

Keywords: Fixed-term contracts; duration models (search for similar items in EconPapers)
JEL-codes: C41 J41 J60 (search for similar items in EconPapers)
Date: 2003-05, Revised 2005-07
New Economics Papers: this item is included in nep-reg
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: How Binding are Legal Limits? Transitions from Termporary to Permanent Work in Spain (2015)
Journal Article: How binding are legal limits? Transitions from temporary to permanent work in Spain (2007)
Working Paper: How Binding are Legal Limits? Transitions from Temporary to Permanent Work in Spain (2003)
Working Paper: How Binding Are Legal Limits? Transitions from Temporary to Permanent Work in Spain (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:682

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