The Impact of Temporary Contracts on Gross Job and Worker Flows

Fredrik Heyman and Mahmood Arai

No 494, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: Based on direct information on hires and separations for 11.000 establishments during 11 years, we report new evidence that around half of job and worker flows stem from temporary contracts which account for only around 10 percent of employment. The share of temporary contracts is positively correlated to employment growth indicating that firms use temporary jobs as a buffer in labor adjustment. Job reallocation for temporary contracts is acyclical. Service establishments with a high share of temporary employment exhibit acyclical job reallocation while permanent jobs in manufacturing are countercyclical.

Keywords: Job Creation and Job Destruction; Worker Flows; Dual Labor Markets; Temporary Employment. (search for similar items in EconPapers)
JEL-codes: J21 J23 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2002-01-22
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Citations: View citations in EconPapers (4)

Published as Heyman, Fredrik and Mahmood Arai, 'Temporary Contracts and the Dynamics of Job Turnover ' in Economics Bulletin, 2004.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0494

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