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Stepping-stone effect of atypical jobs: Could the least employable reap the most benefits?

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  • Auray, Stéphane
  • Lepage-Saucier, Nicolas

Abstract

This article estimates the causal impact of atypical work on the probability of finding regular, durable employment and on wage gains. Using a novel administrative dataset on the employment and unemployment history of 1/25th of French workers and the timing-of-events approach, we find a robust stepping-stone effect and no evidence of a lock-in effect. Starting atypical work during unemployment raises the likelihood of finding regular work by 87% in the following months, and has no effect on wage growth. Interestingly, this effect is stronger for workers with weaker ties with the labor market, such as those unemployed for long periods, older individuals or those who worked fewer hours in the year prior to the start of the spell.

Suggested Citation

  • Auray, Stéphane & Lepage-Saucier, Nicolas, 2021. "Stepping-stone effect of atypical jobs: Could the least employable reap the most benefits?," Labour Economics, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:labeco:v:68:y:2021:i:c:s0927537120301494
    DOI: 10.1016/j.labeco.2020.101945
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    2. Matteo Picchio & Mattia Filomena, 2021. "Are Temporary Jobs Stepping Stones Or Dead Ends? A Meta-Analytical Review Of The Literature," Working Papers 455, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Mosthaf, Alexander & Schank, Thorsten & Schwarz, Stefan, 2021. "Do Supplementary Jobs for Welfare Recipients Increase the Chance of Welfare Exit? Evidence from Germany," IZA Discussion Papers 14268, Institute of Labor Economics (IZA).
    4. Susanne Ek Spector, 2022. "Should unemployment insurance cover partial unemployment?," IZA World of Labor, Institute of Labor Economics (IZA), pages 199-199, June.
    5. Bernardo Fanfani & Filippo Passerini, 2024. "Do Alternative Work Arrangements Substitute Standard Employment? Evidence from Worker-Level Data," Working Papers wp1190, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Štefánik, Miroslav & Lafférs, Lukáš, 2024. "Supporting the right workplace experience: a dynamic evaluation of three activation programmes for young job seekers in Slovakia," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-16.
    7. Govert E. Bijwaard & Jackline Wahba, 2023. "Return Versus onward Migration: Go Back or Move On?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(3), pages 640-667, September.
    8. Lixin Cai, 2023. "The Steppingstone Effect of Casual Employment in Australia: A Re‐Examination," The Economic Record, The Economic Society of Australia, vol. 99(326), pages 385-409, September.

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