Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/82911 
Year of Publication: 
2001
Series/Report no.: 
Working Paper No. 2002:1
Publisher: 
Uppsala University, Department of Economics, Uppsala
Abstract: 
Sweden has experienced a substantial increase in temporary work over the 1990s, with most of the rise occurring during a severe macroeconomic recession with mass unemployment. By the early 1990s, workers on fixed-term contracts accounted for 10 percent of the number of employees; by the end of the decade they accounted for 16 percent. The paper presents the Swedish institutional setting, documents basic stylised facts about fixed-term contracts, and discusses the causes of their increased prevalence. Our analysis reveals that open-ended and temporary employment exhibit strikingly different cyclical behaviour with temporary employment being more volatile. A recession is associated with an initial decline in temporary employment followed by a sharp rise from the trough to the end of the recession. We argue that the severe recession of the 1990s is a major factor behind the rise in temporary work in Sweden. Adverse macroeconomic conditions make firms more prone to offer fixed-term contracts and workers more willing to accept them.
Subjects: 
Temporary jobs
Labour market dynamics
Unemployment
JEL: 
E32
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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