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

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 analysed the impact of a large liberalisation i...

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Bibliographic Details
Authors: García-Pérez, José Ignacio, Marinescu, Ioana, Vall Castelló, Judit
Format: article
Status:Versión aceptada para publicación
Publication Date:2019
Country:España
Institution:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repository:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:2445/155661
Online Access:https://hdl.handle.net/2445/155661
Access Level:Open access
Keyword:Contractes de treball
Edat i ocupació
Educació i desenvolupament econòmic
Labor contract
Age and employment
Education and economic development
Description
Summary: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 analysed the impact of a large liberalisation in the regulation of fixed-term contracts in 1984. Using a cohort regression discontinuity design, we find that over the first 10 years in the labour market, the reform reduced the number of days worked (by 4.9%) and earnings (by 9.8%). Over 27 years of labour market career, yearly earnings losses amount to a persistent 7.3%