Scandinavian Working Papers in Economics

Working Papers,
National Institute of Economic Research

No 71: Permanent and Temporary Labour: Job and Worker Flows in Sweden, 1989-1998

Mahmood Arai and Fredrik Heyman
Additional contact information
Mahmood Arai: National Institute of Economic Research, Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
Fredrik Heyman: National Institute of Economic Research, Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden

Abstract: We use direct information on quarterly establishment-level hires and separations, as well as employee stocks to analyse the dynamics of permanent and temporary contracts. Job and worker flow rates for temporary contracts, indicating that previous results based on all types of contracts are dominated by the high turnover of temporary employment. Our results indicate that job destruction varies more than job creation in shrinking manufacturing industries while we observe the contrary for the services. Job reallocation is counter-cyclical only for permanent contracts in manufacturing, implying substantial heterogeneity in job turnover across industries and contract types.

Keywords: Job creation and Job dustruction; Worker Flows; Dual Labour Markets

JEL-codes: J21; J23

38 pages, February 1, 2000

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