Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain

J. Ignacio García Pérez (), Ioana Marinescu and Judit Vall Castello

No 9777, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: By reducing the commitment made by employers, fixed-term contracts can help low-skilled youth find a first job. However, the long-term impact of fixed-term contracts on these workers' careers may be negative. Using Spanish social security data, we analyze the impact of a large liberalization in the regulation of fixed-term contracts in 1984. Using a cohort regression discontinuity design, we find that the reform raised the likelihood of male high-school dropouts working before age 19 by 9%. However, in the longer run, the reform reduced number of days worked (by 4.5%) and earnings (by 9%).

Keywords: temporary contracts; long-term impact; labour market career (search for similar items in EconPapers)
JEL-codes: J08 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2016-02
New Economics Papers: this item is included in nep-cta, nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Can Fixed-term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain (2019)
Working Paper: Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain (2016)
Working Paper: Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career path? Evidence from Spain (2015)
Working Paper: Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain (2014)
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