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Stepping-stone effect of atypical jobs: Could the least employable reap the most benefits?

Stéphane Auray and Nicolas Lepage-Saucier

Labour Economics, 2021, vol. 68, issue C

Abstract: This article estimates the causal impact of atypical work on the probability of finding regular, durable employment and on wage gains. Using a novel administrative dataset on the employment and unemployment history of 1/25th of French workers and the timing-of-events approach, we find a robust stepping-stone effect and no evidence of a lock-in effect. Starting atypical work during unemployment raises the likelihood of finding regular work by 87% in the following months, and has no effect on wage growth. Interestingly, this effect is stronger for workers with weaker ties with the labor market, such as those unemployed for long periods, older individuals or those who worked fewer hours in the year prior to the start of the spell.

Date: 2021
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DOI: 10.1016/j.labeco.2020.101945

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