Temporary employment and the future labor market status

Abstract

The aim of this article is to describe and explain the development of temporary employment in Sweden between 1992 and 2010, and to investigate the effect of temporary employment for individuals' future career on the labor market. The article analyzes temporary employees' status transitions on the labor market using Swedish Labour Force Survey (LFS) data for the period 1992-2010. Each cohort consists of 2-year panels and focuses on changes between the first and last measuring points. The findings indicate that the specific type of temporary employment is crucial as regards whether or not it constitutes a stepping-stone toward permanent employment. The chances are greater in the case of, for example, substitutes, but are considerably less in the case of on-call employment. Certain types of temporary employment thus seem to be used by the employer to screen the employability of the employee, while others are used for achieving flexibility.