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

J. Ignacio García-Pérez, Judit Vall Castello and Ioana Marinescu
Authors registered in the RePEc Author Service: J. Ignacio García Pérez ()

No 22048, NBER Working Papers from National Bureau of Economic Research, Inc

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%).

JEL-codes: J3 J41 J48 J64 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-eur and nep-lma
Note: LS PE
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Citations: View citations in EconPapers (10)

Published as J Ignacio García-Pérez & Ioana Marinescu & Judit Vall Castello, 2019. "Can Fixed-term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain," The Economic Journal, vol 129(620), pages 1693-1730.

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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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