Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration Until Regular Work

55 Pages Posted: 11 Aug 2004

See all articles by Marloes De Graaf-Zijl

Marloes De Graaf-Zijl

University of Amsterdam - Amsterdam Institute for Advanced Labour Studies (AIAS)

Gerard J. van den Berg

VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Tinbergen Institute

Arjan Heyma

University of Amsterdam - SEO Economic Research

Date Written: August 2004

Abstract

Individual labour market transitions from unemployment into temporary work are often succeeded by a transition from temporary into regular work. We investigate whether temporary work increases the transition rate to regular work. In that case, temporary work may enhance labour market efficiency. We use longitudinal survey data of individuals to estimate a multi-state duration model, applying the "timing of events" approach. To deal with selectivity, the model incorporates transitions from unemployment to temporary jobs and unobserved determinants of the transition rates. The data contain multiple spells in labour market states at the individual level. We analyse the results using novel graphical representations. The results unambiguously show that temporary jobs serve as stepping stones towards regular employment. They shorten the duration of unemployment and they substantially increase the fraction of unemployed workers who have regular work within a few years after entry into unemployment, as compared to a situation without temporary jobs.

Keywords: unemployment, fixed term contracts, temporary work, job search, duration model, treatment effect

JEL Classification: J64, C41

Suggested Citation

De Graaf-Zijl, Marloes and van den Berg, Gerard J. and Heyma, Arjan, Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration Until Regular Work (August 2004). IZA Discussion Paper No. 1241. Available at SSRN: https://ssrn.com/abstract=575083

Marloes De Graaf-Zijl

University of Amsterdam - Amsterdam Institute for Advanced Labour Studies (AIAS) ( email )

PLantage Muidergracht 12
Amsterdam, 1018 TV
Netherlands

HOME PAGE: http://www.uva-aias.net/

Gerard J. Van den Berg (Contact Author)

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6132 (Phone)
+32 20 444 6020 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

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

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Arjan Heyma

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

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