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Knockin' on heaven's door? Reframing the debate on temporary employment and wages: evidence from Europe
[journal article]
Abstract This article reframes the debate on the consequences of flexibilization in European labour markets focusing on the unexplored impact of temporary employment on occupational wages for permanent workers. Exploiting the variation in the temps' density within occupation and age groups across European co... view more
This article reframes the debate on the consequences of flexibilization in European labour markets focusing on the unexplored impact of temporary employment on occupational wages for permanent workers. Exploiting the variation in the temps' density within occupation and age groups across European countries between 2003 and 2010, we find that temporary contracts negatively affect occupational average wages for insiders' workers. These results are still robust using a dynamic system based on generalized method of moments (GMM-SYS) to account for potential endogeneity issues. We also explore the existence of heterogeneity across different occupational clusters and institutional settings. Our estimates indicate that the knock-on effect is large in countries with low employment protection legislation and it is driven by occupations characterized by untechnical work logics.... view less
Keywords
labor market trend; flexibility; temporary employment; income distribution; wage level; term contract; standard employment relationship; occupational group; Europe
Classification
Labor Market Research
Free Keywords
skills; labour market institutions; employment; European Survey on Income and Living Conditions (EU-SILC) 2003-2010; European Union Labour Force Survey (EU-LFS) 2003-2010
Document language
English
Publication Year
2019
Page/Pages
p. 1-39
Journal
Socio-Economic Review (2019)
DOI
https://doi.org/10.1093/ser/mwz042
ISSN
1475-147X
Status
Published Version; peer reviewed
Licence
Creative Commons - Attribution-Noncommercial-No Derivative Works 4.0