The Influence of Temporary Employment on Unemployment Exits in a Competing Risks Framework |
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Authors: | José M. Arranz Carlos García-Serrano Luis Toharia |
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Affiliation: | 1.Departamento de Fundamentos de Economía e Historia Económica,Universidad de Alcalá,Alcalá de Henares, Madrid,Spain |
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Abstract: | Using Spanish longitudinal data from the period 1992–2004, this paper examines labour market transitions of the newly unemployed in order to investigate the determinants of unemployment duration in a competing risks framework with four destination states: temporary employment, permanent employment, self-employment and inactivity. Special emphasis is placed on the influence of previous job variables. We find that individuals who become unemployed due to the end of a temporary contract are more likely to exit unemployment by finding another temporary job and less likely to exit through permanent jobs, self-employment or inactivity. However, long tenures in temporary jobs enhance the probability of finding a permanent employment. Moreover, the length of the previous job, when it terminates due to a layoff, hinders the probability of moving to employment (either permanent or temporary). |
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