Employment Expectations and Gross Flows by Type of Work Contract
47 Pages Posted: 13 Feb 2004
Date Written: January 2004
There is growing interest in understanding firms' temporary and permanent employment practices and how institutional changes shape them. Using data on Spanish establishments, we examine: (a) how employers adjust temporary and permanent job and worker flows to prior employment expectations, and (b) how the 1994 and 1997 labour reforms promoting permanent employment affected establishments' employment practices. Generally, establishments' prior employment expectations are realized through changes in all job and worker flows. However, establishments uniquely rely on temporary hires as a buffer to confront diminishing long-run employment expectations. None of the reforms significantly affected establishments' net temporary or permanent employment flows.
Keywords: Gross job flows, gross worker flows, temporary, permanent, expectations, Spain
JEL Classification: J20, J21, J23, J41
Suggested Citation: Suggested Citation