Cohort and education as predictors of temporary employment, and their relation to low wages and socioeconomic classification for young people in Sweden

Abstract

The purpose of my paper is to describe and explain the probability of staying in temporary work for young people (age 16–27) in Sweden between 1992 and 2011 and its relation to socioeconomic outcomes (low socioeconomic classification and wage). I used panel data from the Swedish Labour Force Survey (LFS) and the longitudinal integration database for health insurance and labour market studies (LISA). To analyse the data, I used a dynamic probit model, unconditional quantile regression, and a pooled bivariate probit model. My results suggest that young people who have a low education have lower probabilities of receiving temporary employment in younger cohorts. However, younger cohorts with a lower education have a substantive wage disadvantage, specifically in younger cohorts compared to older cohorts. Low-educated cohorts also have a higher probability of obtaining low socioeconomic classification (SEC) employment, which is conditional on holding temporary employment in older cohorts compared to other educational groupings.