The growth in permanent contracts and its potential impact on spending

Brindusa Anghel, Cristina Barceló and Ernesto Villanueva
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Cristina Barceló: Banco de España

Economic Bulletin, 2023, issue 2023/Q1, No 19

Abstract: Rationale This article analyses what impact the increase in permanent contracts observed over the course of 2022 might have had on household spending. Takeaways •In 2019, workers on permanent contracts devoted 81% (on average) of their household income to spending, compared with 72% for those on temporary contracts. •In the past, having their temporary contract converted to a permanent one has prompted households to increase their spending-to-income ratio by approximately 20% over the following two quarters. •Based on those figures, the conversion of temporary to permanent contracts observed in 2022 could have increased the spending-to-income ratio by between 0.18 and 0.24 percentage points.

Keywords: Permanent contracts; permanent seasonal contracts; spending-to-income ratio; saving (search for similar items in EconPapers)
JEL-codes: D12 D14 E21 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bde:journl:y:2023:i:01:n:19

DOI: 10.53479/29793

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