Is temporary employment a stepping stone for unemployed school leavers?


Goebel, Christian ; Verhofstadt, Elsy


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URL: http://ub-madoc.bib.uni-mannheim.de/2166
URN: urn:nbn:de:bsz:180-madoc-21664
Document Type: Working paper
Year of publication: 2008
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J08 J64 J41 ,
Subject headings (SWD): Belgien , Flandern , Absolvent , Befristeter Arbeitsvertrag , Berufliche Integration
Keywords (English): temporary employment , school leavers , labour market policy
Abstract: Many school-leavers enter the labour market via temporary employment. In this paper we investigate the impact of a temporary employment spell at the start of the career on the transition rate into permanent employment. We compare the case of temporary employment to the hypothetical case of a direct transition from unemployment to permanent employment. In order to control for selective participation in temporary employment we include a large set of explanatory variables which have been especially collected to study school-leavers. We apply the AIC-information criterion to select the appropriate specification for unobserved heterogeneity. Based on the information criteria we conclude that given our data, there is no support for a model with selection in unobserved characteristics. Simulation exercises provide insights into the development of the effect of temporary employment over time. For a sample of unemployed Flemish school-leavers we find that in the short run temporary employment delays the school leaver’s transition to permanent employment. However, in the long run temporary employment acts as a stepping stone and decreases the duration until permanent employment.
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Goebel, Christian ; Verhofstadt, Elsy (2008) Is temporary employment a stepping stone for unemployed school leavers? Open Access [Working paper]
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