Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Laura Larsson, Linus Lindqvist
Stepping-stones or dead-ends? An analysis of Swedish replacement contracts
() and Oskar Nordström Skans
Abstract: The paper studies if temporary jobs in the form of
fixed-term replacement contracts reduce the risk of future unemployment
among job-seekers. Using exact matching on labour market history and
personal characteristics we find positive effects of the replacement
contract on future labour market status. We also find that the longer the
replacement contract the higher the probability of having an open ended
contract at the same site 2–2.5 years after the start of the contract. No
effect of the length is found on unemployment, employment or wages.
Overall, the results suggest that receiving a fixed term contract reduces
the risk of future unemployment, and that a longer contract increases the
position within the workplace but not on the market in general.
Keywords: Unemployment; temporary employment; matching; (follow links to similar papers)
JEL-Codes: J64; (follow links to similar papers)
37 pages, June 28, 2005
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