Temporary Jobs: Stepping Stones or Dead Ends?

Temporary Jobs: Stepping Stones or Dead Ends?

November 2000 | Alison L. Booth, Marco Francesconi and Jeff Frank
Temporary jobs in Britain account for 7% of male and 10% of female employees. Unlike much of continental Europe, this proportion has remained stable over the 1990s. Using data from the British Household Panel Survey, the study finds that temporary workers report lower job satisfaction, receive less training, and are less well-paid than permanent workers. However, there is evidence that fixed-term contracts can serve as stepping stones to permanent employment. Women who start in fixed-term contracts and move to permanent jobs fully catch up to those who start in permanent jobs, while men face a long-term 5% wage loss. The study investigates three main issues: who holds temporary jobs, job satisfaction and training of temporary workers compared to permanent workers, and the time it takes for temporary workers to move into permanent jobs. Longitudinal data from the first seven waves of the BHPS (1991-1997) is used, distinguishing between casual/seasonal workers and fixed-term contract workers. Results show that temporary jobs are not desirable as long-term careers, as they typically pay less and are associated with lower job satisfaction and training. However, fixed-term contracts are effective stepping stones to permanent jobs. The study also finds that temporary workers differ in terms of their wages, hours, and occupations. Seasonal-casual workers earn less and have lower wages than fixed-term workers. Fixed-term workers are better paid, work longer hours, and are more concentrated in professional and technical occupations. The study also finds that temporary jobs have different effects on career prospects depending on gender and contract type. Women who start in fixed-term contracts and move to permanent jobs fully catch up to those who start in permanent jobs, while men face a long-term wage loss. The study concludes that temporary jobs are not uniformly negative. Fixed-term contracts can be stepping stones to permanent employment, but seasonal-casual jobs are less likely to be probationary and may have negative career effects. The study highlights the importance of distinguishing between types of temporary work and the need for further research on the long-term effects of temporary employment on career prospects.Temporary jobs in Britain account for 7% of male and 10% of female employees. Unlike much of continental Europe, this proportion has remained stable over the 1990s. Using data from the British Household Panel Survey, the study finds that temporary workers report lower job satisfaction, receive less training, and are less well-paid than permanent workers. However, there is evidence that fixed-term contracts can serve as stepping stones to permanent employment. Women who start in fixed-term contracts and move to permanent jobs fully catch up to those who start in permanent jobs, while men face a long-term 5% wage loss. The study investigates three main issues: who holds temporary jobs, job satisfaction and training of temporary workers compared to permanent workers, and the time it takes for temporary workers to move into permanent jobs. Longitudinal data from the first seven waves of the BHPS (1991-1997) is used, distinguishing between casual/seasonal workers and fixed-term contract workers. Results show that temporary jobs are not desirable as long-term careers, as they typically pay less and are associated with lower job satisfaction and training. However, fixed-term contracts are effective stepping stones to permanent jobs. The study also finds that temporary workers differ in terms of their wages, hours, and occupations. Seasonal-casual workers earn less and have lower wages than fixed-term workers. Fixed-term workers are better paid, work longer hours, and are more concentrated in professional and technical occupations. The study also finds that temporary jobs have different effects on career prospects depending on gender and contract type. Women who start in fixed-term contracts and move to permanent jobs fully catch up to those who start in permanent jobs, while men face a long-term wage loss. The study concludes that temporary jobs are not uniformly negative. Fixed-term contracts can be stepping stones to permanent employment, but seasonal-casual jobs are less likely to be probationary and may have negative career effects. The study highlights the importance of distinguishing between types of temporary work and the need for further research on the long-term effects of temporary employment on career prospects.
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