Abstract
The French labor market is segmented between permanent and temporary workers. The second category has difficulty in getting an open-ended contract. This paper aims at depicting workers on short-term contracts and shows the consequences on their professional career are negative and significant. A large part of the wage gap between permanent and temporary workers remains unexplained by observable characteristics. They receive less on-the-job training and their likelihood of obtaining a stable job is lower than 30% after 1 year and a half. They have also a higher probability of being the adjustment variable in case of an economic negative shock. These different findings show the importance of using public policies to encourage transitions from fixed-term to permanent employment and reducing labor-market duality.
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Source: LFS; Author’s calculations
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Notes
Full estimations are available in “Web Appendix” section.
Table of the total decomposition is in “Web Appendix” section.
The full estimation is in “Web Appendix” section.
For a description of this survey, see Jadeau et al. (2015).
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I am gratefull to Clément Bosquet and the anonymous referees for their helpfull comments.
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Berson, C. Fixed-Term Contracts and Labor Market Duality in France. De Economist 166, 455–476 (2018). https://doi.org/10.1007/s10645-018-9318-y
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DOI: https://doi.org/10.1007/s10645-018-9318-y