Logo image
Wage Growth Implications of Fixed-Term Employment: An Analysis by Contract Duration and Job Mobility
Journal article   Peer reviewed

Wage Growth Implications of Fixed-Term Employment: An Analysis by Contract Duration and Job Mobility

Catalina Amuedo-Dorantes and Ricardo Serrano-Padial
Labour economics, v 14(5), pp 829-847
01 Oct 2007

Abstract

Contract duration Fixed-term work Job mobility Spain Temporary employment Wage growth
Focusing on Spain, where fixed-term workers account for a third of the wage and salary workforce, we examine the wage growth implications of fixed-term employment of varying duration while distinguishing between wage growth occurring on-the-job versus via job mobility. Wage growth among employees with indefinite work contracts largely occurs via job mobility, whereas fixed-term workers gain via job mobility as well as on-the-job. Consequently, job stayers with fixed-term contracts a year ago narrow their wage gap with respect to similar counterparts with indefinite-term contracts. Yet, this effect is solely driven by the 10.5 percentage points higher wage growth experienced by fixed-term workers with 6-months contracts able to keep their jobs beyond their initial contract period. Given the limited number of short-term temporary workers in those circumstances, the overall wage gap between past fixed-term and indefinite-term workers is unlikely to vanish in the near future.

Details

UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#1 No Poverty
#8 Decent Work and Economic Growth
#10 Reduced Inequalities

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Collaboration types
Domestic collaboration
Web of Science research areas
Economics
Logo image