In this paper we study the effect of flexibility on the probability of work stabilisation and on wages, by focusing on flexibility when entering the labour market and on periods of interruption of work. Our main goal is to evaluate how having entered the labour market with fixed-term contracts or having experienced periods of interruption of work can affect the probability to stabilise and the wage level in subsequent jobs. Differently from the existing literature, we study female and male workers separately. The analysis is carried out on a dataset built up by the Istituto per lo Sviluppo della Formazione Professionale dei Lavoratori-ISFOL (Institute for the Development of Professional Training of Workers) on a sample of Italian workers. The dataset is representative of the Italian population and contains detailed information on work experience previous to the present occupation with details on types of contracts and causes of career interruptions. In the first part of the paper we examine density functions of hourly wages relative to contractual characteristics of first jobs and number of work interruptions. This part of the analysis highlights some gender differences, especially with respect to the number of spells: women are affected more than men in their hourly wages when the number of interruptions of work activity becomes too high. In the second part of the paper we estimate separate earnings functions for the sample of men and women with full-time permanent contracts. As to women, we correct for selection into full-time work by estimating a first-stage equation and including in the second-stage wage function the Mill's ratio. This correction is not necessary for men, who are very few in part-time jobs. Estimates show that flexibility affects differently men and women: the former are affected in the levels of wages while the latter in the probability to access permanent jobs. Some differences emerge also with respect to the causes of work interruptions.We explain these results in accordance with the hypothesis of the existence of a segmented labour market that sticks women in the secondary segment. On the other hand, although men are less affected by flexibility in terms of accessing the primary segment, flexibility in entrance and periods of interruption of the activity affect their human capital with negative consequences on wages.
The flexibility penalty in a long-term perspective / Addabbo, Tindara; D., Favaro. - STAMPA. - (2011), pp. 167-194.
|Data di pubblicazione:||2011|
|Titolo:||The flexibility penalty in a long-term perspective|
|Autore/i:||Addabbo, Tindara; D., Favaro|
|Codice identificativo Scopus:||2-s2.0-84895273318|
|Titolo del libro:||Gender Gap: Causes, Experiences and Effects|
|Editore:||Nova Science Publishers|
|Nazione editore:||STATI UNITI D'AMERICA|
|Citazione:||The flexibility penalty in a long-term perspective / Addabbo, Tindara; D., Favaro. - STAMPA. - (2011), pp. 167-194.|
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