The use of permanent and temporary jobs across Spanish regions: Do unit labour cost differentials offer an explanation?

J. Ignacio García-Pérez () and Yolanda F. Rebollo-Sanz
Additional contact information
J. Ignacio García-Pérez: Department of Economics, Universidad Pablo de Olavide & Fundación Centro de Estudios Andaluces
Authors registered in the RePEc Author Service: J. Ignacio García Pérez ()

No 06.11, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: We study the use of permanent and temporary contracts across Spanish regions during the period 1995-2001. First we show that there are significant differences among the regional rates of permanent employment and that these differences tend to persist over time. To understand the underlying factors behind these observed differences we estimate a binary choice model for the individual probability of having a permanent contract, taking advantage of the panel data dimension of the Spanish Labour Force Survey. Our main results are that unit labour cost differentials, and thus labour productivity and total labour cost differentials, partially explain the divergence of regional permanent employment rates. Moreover, compared to the influence of regional fixed effects and other possible explanations such as sector specialisation or the presence of small firms in the region, unit labour costs explain more than two thirds of the observed variance in the permanent employment rate across Spanish regions, once all the relevant heterogeneity is taken into account.

Keywords: Temporary Employment; Unit Labour Costs; Random Effects; Spanish Regions. (search for similar items in EconPapers)
JEL-codes: C23 J23 J31 J41 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2006-03
New Economics Papers: this item is included in nep-dcm, nep-geo and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.upo.es/serv/bib/wps/econ0611.pdf First version, 2006 (application/pdf)

Related works:
Working Paper: The use of permanent and temporary jobs across Spanish regions: Do unit labour cost differentials offer an explanation? (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:06.11

Access Statistics for this paper

More papers in Working Papers from Universidad Pablo de Olavide, Department of Economics Carretera de Utrera km.1, 41013 Sevilla. Contact information at EDIRC.
Bibliographic data for series maintained by Publicación Digital - UPO ().