The Response of Household Wealth to the Risk of Losing the Job: Evidence from Differences in Firing Costs

Barceló, Cristina; Villanueva, Ernesto

doi:10.2139/ssrn.1555614

Cited by 74 publications

(29 citation statements)

References 35 publications

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“…Barceló and Villanueva (2010) find that in Spain workers with temporary contracts accumulate more financial wealth to build a buffer stock of savings. Their finding can explain why the response by temporary contract workers is not as strong, because they can draw down their stock of savings, partially offsetting the effect of larger job instability.…”

Section: Age and Job Stabilitymentioning

confidence: 83%

Consumption in the shadow of unemployment

Campos¹,

Reggio

2015

European Economic Review

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Section: Age and Job Stabilitymentioning

confidence: 83%

Consumption in the shadow of unemployment

Campos¹,

Reggio

2015

European Economic Review

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“…To account for this, we borrow from previous research (Barceló and Villanueva 2010) and instrument the type of contract with the subsidies given by regional governments to companies when they converted their temporary contracts into permanent ones. In the period 1997 to 2004, and with the purpose of reducing the temporality rate, local governments independently introduced regional subsidies to firms as an incentive to use permanent contracts to hire workers.…”

Section: Figure 1 Probability Of Self-employment By Type Of Contractmentioning

confidence: 99%

“…This could be the case if, for example, female workers during periods of weak attachment to the labor market tend to work under temporary contracts and be less inclined to start their own business. Finally, in column 6 we show the results from adding controls for working full-time interacted with motherhood and the type of contract; the interaction 19 For a complete description of the programs see Barceló and Villanueva (2010). The amount granted varied between 1,200 and 14,000 euros.…”

Section: Figure 1 Probability Of Self-employment By Type Of Contractmentioning

confidence: 99%

Temporary Contracts and Work—Family Balance in a Dual Labor Market

Bonet¹,

Cruz²,

Kranz³

et al. 2013

ILR Review

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A well-established finding in the literature is that self-employment enables mothers to accommodate work and family needs better than when they are engaged in organizational employment. With this result in mind, the authors investigate within a dual system of job protection if women under temporary contracts face greater work-family conflicts than those under permanent contracts. The authors use data on women's work and fertility histories from the Spanish Continuous Sample of Working Histories to analyze whether women under temporary contracts transition to self-employment upon motherhood more than those who are under permanent contracts. Analyses show that being under a temporary contract increases women's likelihood of transitioning to self-employment upon childbirth. Supplementary analyses show that this is partly the result of voluntary transitions and not an employer's decision to terminate a temporary contract upon motherhood. Overall, these findings reveal a hidden cost of temporary contracts: the greater difficulty in balancing work and family.T he arrival of a child imposes new family demands on parents who need to ensure that their newborn's needs are fulfilled. Since women continue to bear the major responsibilities for household production, parenthood is likely to increase the conflict between employment and family duties for working mothers. Given the increased participation of women in the labor force and in the number of dual-earner families, work-family concerns have become an important public policy issue. Consequently, during the past two decades employers and governments have shown growing interest in understanding what policies and practices are effective at reducing work-family conflict. Several papers have investigated the relationship

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“…These authors also find that, since the regulation of fixed-term contracts in Spain in 1984, worker and job turnover have increased considerably. Not surprisingly, several authors have found that the likelihood of transiting into unemployment is considerably higher among workers with fixed-term contracts than those with permanent ones (Güell and Petrongolo, 2007;García-Ferreira and Villanueva, 2007;and Barceló and Villanueva, 2010). As such, Barceló and Villanueva, 2010, estimate that for a given year the probability of entering an unemployment spell is 8 percentage points higher for workers with fixed-term contracts (10%) than those with permanent ones (2%).…”

mentioning

confidence: 99%

“…Not surprisingly, several authors have found that the likelihood of transiting into unemployment is considerably higher among workers with fixed-term contracts than those with permanent ones (Güell and Petrongolo, 2007;García-Ferreira and Villanueva, 2007;and Barceló and Villanueva, 2010). As such, Barceló and Villanueva, 2010, estimate that for a given year the probability of entering an unemployment spell is 8 percentage points higher for workers with fixed-term contracts (10%) than those with permanent ones (2%). Amuedo-Dorantes, 2000, also finds that temporary work spells in Spain are unlikely to end in permanent jobs, regardless of workers' tenure, and that temporary work is more likely to become a trap than a bridge to permanent employment.…”

mentioning

confidence: 99%

The part-time pay penalty in a segmented labor market

Fernández-Kranz

Rodríguez‐Planas

2011

Labour Economics

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This paper is the first to examine the implications of switching to PT work for women's subsequent earnings trajectories, distinguishing by their type of contract: permanent or fixedterm. Using a rich longitudinal Spanish data set from Social Security records of over 76,000 prime-aged women strongly attached to the Spanish labor market, we find that PT work aggravates the segmentation of the labor market insofar there is a PT pay penalty and this penalty is larger and more persistent in the case of women with fixed-term contracts. The paper discusses problems arising in empirical estimation (including a problem not discussed in the literature up to now: the differential measurement error of the LHS variable by PT status), and how to address them. It concludes with policy implications relevant for Continental Europe and its dual structure of employment protection.

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The Response of Household Wealth to the Risk of Losing the Job: Evidence from Differences in Firing Costs

Cited by 74 publications

References 35 publications

Consumption in the shadow of unemployment

Consumption in the shadow of unemployment

Temporary Contracts and Work—Family Balance in a Dual Labor Market

The part-time pay penalty in a segmented labor market

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