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Are Contingent Jobs Dead Ends or Stepping Stones to Regular Jobs? Evidence from a Structural Estimation

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Author Info
Julen ESTEBAN-PRETEL
NAKAJIMA Ryo
TANAKA Ryuichi

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Abstract

The proportion of part-time, dispatch, and temporary workers has increased in many developed economies in recent years. These workers receive lower average wages and benefits, and are subject to lower employment stability. This paper analyzes the effects of initially taking such jobs on the employment careers of young workers. We build an on-and-off-the-job search model, using Japanese data to perform a structural estimation of the model parameters and simulate career paths, in order to study the effects of the initial choice of employment on the probability of having a regular job in the future and on the welfare of the worker. We find that although contingent jobs are neither stepping stones towards regular employment nor dead-ends, starting a career in a contingent job has a lasting effect on the welfare of the individual in Japan.

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Publisher Info
Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 09002.

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Length: 48 pages
Date of creation: Jan 2009
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Handle: RePEc:eti:dpaper:09002

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages F189-F213, June. [Downloadable!] (restricted)
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  2. Genda, Yuji & Kurosawa, Masako, 2001. "Transition from School to Work in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 465-488, December. [Downloadable!] (restricted)
  3. Kondo, Ayako, 2007. "Does the first job really matter? State dependency in employment status in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(3), pages 379-402, September. [Downloadable!] (restricted)
  4. James J. Heckman & Christopher J. Flinn, 1982. "New Methods for Analyzing Structural Models of Labor Force Dynamics," NBER Working Papers 0856, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Olympia Bover & Ramón Gómez, 2004. "Another look at unemployment duration: exit to a permanent vs. a temporary job," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 285-314, May. [Downloadable!]
  6. Michael Kvasnicka, 2008. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Working Papers 13843, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Kenn Ariga & Masako Kurosawa & Fumio Ohtake & Masaru Sasaki, 2009. "How do high school graduates in Japan compete for regular, full time jobs? An empirical analysis based upon an internet survey of the youth," KIER Working Papers 678, Kyoto University, Institute of Economic Research. [Downloadable!]
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This page was last updated on 2009-11-4.

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