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Garcia Perez, J. Ignacio
Marinescu, Ioana E.
Vall-Castello, Judit
Year of Publication: 
Series/Report no.: 
IZA Discussion Papers 9777
By reducing the commitment made by employers, fixed-term contracts can help low-skilled youth find a first job. However, the long-term impact of fixed-term contracts on these workers' careers may be negative. Using Spanish social security data, we analyze the impact of a large liberalization in the regulation of fixed-term contracts in 1984. Using a cohort regression discontinuity design, we find that the reform raised the likelihood of male high-school dropouts working before age 19 by 9%. However, in the longer run, the reform reduced number of days worked (by 4.5%) and earnings (by 9%).
temporary contracts
long-term impact
labour market career
Document Type: 
Working Paper

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