Elisabetta Trevisan: (School of Advanced Studies in Venice, Postal: Departments of Economics, Ca’ Foscari University, Canareggio 873, Venice, Italy, The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Abstract: This paper investigates the impact of the introduction of new restrictive permanent contracts on the perceived job security of the workers in Spain. The perceived job security is strongly influenced by the characteristics of individuals and their distribution within the groups. Comparing heterogeneous groups could make the traditional DID estimator biased. To address this issue I combine the propensity score matching with a fixed effect estimator. The analysis is conducted using data drawn from the ECHP Survey for Spain from 1995 to 2000. The result is that this reform has a positive impact only for one targeted group, i.e. the young workers and no effect for the others. Several robustness checks are performed.
39 pages, April 18, 2007
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