Working Papers 2000 – Abstracts
8/2000
Are Casual Jobs a Freeway to Permanent Employment
Jenny Chalmers and Guyonne Kalb
This study examines whether casual work can shorten the time taken to move
from unemployment into permanent work using longitudinal data from the Survey
of Employment and Unemployment Patterns. The analysis is based on comparison
of the transition rate from unemployment to permanent work with the combined
transition rates of unemployment to casual work and casual work to permanent
work. Hazard rate models are used to estimate each of the transition rates.
The models include observed and unobserved heterogeneity and allow for correlation
between the transition rates. The evidence presented suggests that accepting
casual work is beneficial for some unemployed people in their search for permanent
work.
Keywords: Unemployment, casual employment, job search, multivariate
duration models, hazard rate
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