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When Does the Stepping‐Stone Work? Fixed‐Term Contracts Versus Temporary Agency Work in Changing Economic Conditions

Author

Listed:
  • Pauline Givord

    (INSEE - Institut national de la statistique et des études économiques (INSEE))

  • Lionel Wilner

    (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper emphasizes differences among short‐term contracts in terms of career prospects. Using French data over the 2002–2010 period, we rely on a dynamic model with fixed effects to disentangle state dependence from unobserved heterogeneity. Although fixed‐term contracts may provide a ‘stepping‐stone' to permanent positions, temporary agency work is hardly better than unemployment in this regard. The Great Recession of 2008 has changed the dynamics on the labor market and amplified the difference between fixed‐term contracts and temporary agency work. For both types of temporary workers, providing overtime work does not significantly increase the transition to permanent employment.

Suggested Citation

  • Pauline Givord & Lionel Wilner, 2014. "When Does the Stepping‐Stone Work? Fixed‐Term Contracts Versus Temporary Agency Work in Changing Economic Conditions," Post-Print hal-04799379, HAL.
    • Handle: RePEc:hal:journl:hal-04799379
    DOI: 10.1002/jae.2394
    Note: View the original document on HAL open archive server: https://hal.science/hal-04799379v1
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