Fixed-Term Contracts and the Duration Distribution of Unemployment

Maia Güell ()

No 791, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In the mid-1980s, many European countries introduced fixed-term contracts. Since then their labor markets have become more dynamic. This paper studies the possible implications of such reforms for the duration distribution of unemployment. I estimate a parametric duration model using cross-sectional data drawn from the Spanish Labor Force Survey from 1980 to 1994 to analyze the probability of leaving unemployment before and after the introduction of fixed-term contracts. I find that the difference in the probability of leaving unemployment between the short and long term unemployed increased after this reform. Semi-parametric estimation of the model also shows that for long spells, the probability of leaving unemployment decreased between the mid-1980s and the early 1990s.

Keywords: cross-sectional data; duration model; turnover (search for similar items in EconPapers)
JEL-codes: C41 J63 J64 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2003-06
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Fixed-term Contracts and the Duration Distribution of Unemployment (2015)
Working Paper: Fixed-term contracts and the duration distribution of unemployment (2003)
Working Paper: Fixed-Term Contracts and the Duration Distribution of Unemployment (2002)
Working Paper: Fixed-Term Contracts and the Duration Distribution of Unemployment (2001)
Working Paper: Fixed-term contracts and the duration distribution of unemployment (2001)
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