Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain / J. Ignacio García-Pérez, Judit Vall Castelló, Ioana Marinescu.

Format:

Book

Author/Creator:

García-Pérez, J. Ignacio.

Contributor:

National Bureau of Economic Research.

Vall Castelló, Judit.

Marinescu, Ioana.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22048.

NBER working paper series no. w22048

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

By reducing the commitment made by employers, fixed-term contracts can help low-skilled youth find a first job. However, the long-term impact of fixed-term contracts on these workers' careers may be negative. Using Spanish social security data, we analyze the impact of a large liberalization in the regulation of fixed-term contracts in 1984. Using a cohort regression discontinuity design, we find that the reform raised the likelihood of male high-school dropouts working before age 19 by 9%. However, in the longer run, the reform reduced number of days worked (by 4.5%) and earnings (by 9%).

Notes:

Print version record

February 2016.