A B S T R AC TThis article investigates the effects of temporary employment at labour market entry on subsequent individual careers, drawing on data from the British Household Panel Study (BHPS) and the German Socio-Economic Panel (GSOEP) from the period 1991 to 2007. The results show that German temporarily employed entrants suffer from higher initial wage penalties and risks of temporary employment cycles but that all differences compared to entrants with permanent contracts diminish after five years. The integration scenario works more effectively in the UK, where disadvantages are less pronounced and employment losses are primarily related to further education. Moreover, these tendencies vary by education groups and gender. Disadvantages of initial temporary employment are weaker for women in Germany, while gender differences in the UK apparently have less impact. Across borders, temporary contracts are associated with greater initial but vanishing wage penalties and temporary employment cycles for tertiary graduates.
K E Y WO R D Scomparative study / early career / employment effects / temporary employment / wages
Labor market insecurities have been growing in Europe and previous research has illustrated that unemployment and insecure jobs negatively affect individuals' wellbeing and health. Although empirical evidence suggests that these effects vary substantially across different welfare states, we still know little about the moderating role of specific labor market policies. Taking a cross-national comparative perspective, this article investigates how passive and active labor market policies (PLMP, ALMP) as well as employment protection legislation (EPL) shape the experience of unemployment and insecure jobs. We complement micro data of round 1-6 (2002-2012) of the European Social Survey with time-varying macro indicators of PLMP, ALMP, and EPL. The data include about 89,000 individuals nested in 112 country-rounds and 26 countries respectively. We apply three-level random intercept models as well as pooled linear regression models including country fixed effects. The results show that labor market policies are important in shaping the experience of unemployment, but are less relevant for workers in insecure jobs. Specifically, higher unemployment benefit generosity buffers the negative effects of unemployment on well-being but not health. Moreover, we discuss different interpretations for the finding that higher ALMP expenditures are associated with more negative effects of unemployment on well-being and health. With respect to EPL it is found that in countries with high insider protection, deregulating the restrictions on the use of temporary employment increases the negative effects of unemployment on well-being and health.
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