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Social Indicators Research

Erschienen in:

01.08.2008

Transitions from Temporary to Permanent Work in Canada: Who Makes the Transition and Why?

verfasst von: Tony Fang, Fiona MacPhail

Erschienen in: Social Indicators Research | Ausgabe 1/2008

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Abstract

The focus of this paper is on a microeconomic analysis of the annual transition rate from temporary to permanent work of individual workers in Canada for the period 1999–2004. Given that a large proportion of temporary employment is involuntary, an understanding of the factors associated with the transition to permanent work may inform public policy. Factors associated with the transition, namely, human capital, household structures and labour market segmentation are analyzed using data from the Statistics Canada’s Survey of Labour and Income Dynamics (SLID) for the period 1999–2004, limited to paid workers aged 20–64 years, excluding students. Among the key factors associated with the transitions are younger age and low unemployment rates. The analysis adds to the Canadian and international literature on transitions from temporary to permanent work.

Vorheriger Artikel Temporary Employment and Social Inequality in Canada: Exploring Intersections of Gender, Race and Immigration Status

Nächster Artikel The Extent of Economic Vulnerability in the Canadian Labour Market and Federal Jurisdiction: Is There a Role for Labour Standards?

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Estimates for the UK and Spain are from Booth et al. (2002a) and the estimate for the US is from Polikva (1996).

Temporary work may be chosen because it offers an opportunity to better balance work and family responsibilities (for a given set of care options and constraints), and in a limited set of circumstances, temporary work may be both high paying and personally rewarding. For the majority of temporary workers, however, this type of work is undertaken involuntarily.

It is not possible to estimate the percentage of involuntary temporary workers in Canada because such a question as used in other countries about why workers accept the temporary work is not included the Canadian nationally representative data sets.

Note that Australians use the dichotomy of casual and permanent, where casual refers to jobs not covered by standard employment benefits, such as paid sick and holiday leave’. Campbell and Burgess (2001, p. 180) also argue that Australian Bureau of Statistics “data on casual employees underestimate the number and proportion of temporary employees in Australia”.). The term “casual” used in this paper and in other papers using European Labour Force Surveys, refers to a sub-category of the temporary category.

This paper complements research at the aggregate level on the relationship between temporary work, unemployment, and employment protection (see, for example, Baker et al. 2004).

See also Booth et al. (2002b) for Britain; Blanchard and Landier (2001) for France; Holmlund and Storrie (2002) for Sweden.

See Bentolila and Dolado (1994) on the existence of a dual labour market in Spain with permanent workers as insiders and temporary workers as outsiders.

The Master File of SLID contains the individual’s employment insurance (EI) region. Information on the annual unemployment rate between 2000 and 2004 for each EI region was provided by HRSDC.

The result that older workers are less likely to make the transition to permanent worker than younger workers appears to run counter to a human capital hypothesis that older workers, given their greater labour market experience, should have higher rates of transition to permanent work. On the other hand, employers may be more reluctant to make investment in older workers in temporary work arrangement and offer them permanent positions due to their shorter career horizon for employers to recoup the costs of hiring and training (Hutchens 1986).

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Titel: Transitions from Temporary to Permanent Work in Canada: Who Makes the Transition and Why?
verfasst von: Tony Fang
Fiona MacPhail
Publikationsdatum: 01.08.2008
Verlag: Springer Netherlands
Erschienen in: Social Indicators Research / Ausgabe 1/2008
Print ISSN: 0303-8300
Elektronische ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-007-9210-7

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Weitere Artikel der Ausgabe 1/2008

Temporary Work in Transnational Labor Regulation: SER-Centrism and the Risk of Exacerbating Gendered Precariousness

Economic Insecurity and Global Casualisation: Threat or Promise?

Introduction to the Special Issue on Pathways from Casual Work to Economic Security: Canadian and International Perspectives

Temporary Employment and Social Inequality in Canada: Exploring Intersections of Gender, Race and Immigration Status

From Casual Work to Economic Security: The Case of British Columbia

The Extent of Economic Vulnerability in the Canadian Labour Market and Federal Jurisdiction: Is There a Role for Labour Standards?