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 15.12, Working Papers from Universidad Pablo de Olavide, Department of Economics

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; Policy evaluation; Young workers; Discontinuity design; Spain. (search for similar items in EconPapers)
JEL-codes: D04 H43 J23 J31 J42 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2015-09
New Economics Papers: this item is included in nep-eur and nep-lma
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Citations: View citations in EconPapers (1)

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http://www.upo.es/serv/bib/wps/econ1512.pdf Revised version, 1998 (application/pdf)

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 (2016)
Working Paper: Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain (2014)
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