Employment Expectations and Gross Flows by Type of Work Contract

47 Pages Posted: 13 Feb 2004

See all articles by Catalina Amuedo-Dorantes

Catalina Amuedo-Dorantes

San Diego State University - Department of Economics; IZA Institute of Labor Economics

Miguel A. Malo

University of Salamanca - Department of Economics and Economic History

Date Written: January 2004

Abstract

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

Amuedo-Dorantes, Catalina and Malo, Miguel A., Employment Expectations and Gross Flows by Type of Work Contract (January 2004). William Davidson Institute Working Paper No. 646. Available at SSRN: https://ssrn.com/abstract=500003 or http://dx.doi.org/10.2139/ssrn.500003

Catalina Amuedo-Dorantes

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States
619-594-1663 (Phone)
619-594-5062 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Miguel A. Malo (Contact Author)

University of Salamanca - Department of Economics and Economic History ( email )

Salamanca, 37008
Spain

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