Who moves from fixed-term to open-ended contracts? Youth employment transitions in a segmented labour market

Abstract

This article explores the career effects of fixed-term employment among Polish youth, taking into account specific legal and institutional arrangements affecting both the incidence of temporary jobs and the chances of moving into more stable employment contracts. The aim of the analysis is twofold. First, it seeks to assess whether temporary contracts serve as a stepping-stone to stable employment or a trap leading to fragmented careers consisting of recurrent short-term jobs. Second, it identifies the factors which increase the chances of successful labour market integration. Both issues are addressed through a quantitative analysis of retrospective career data for a cohort of respondents aged 21–30 from two waves of the Polish Panel Survey (POLPAN), 2008 and 2013. Results suggest that temporary employment is not restricted to entry-level jobs and acts as a trap rather than a stepping-stone. In addition, the opportunities for moving from fixed-term to open-ended contracts appear to have deteriorated over the years. However, gaining early on-the-job experience, especially in occupations involving highly complex tasks, may improve the chances of attaining job stability.