Template-Type: ReDIF-Paper 1.0
Author-Name: Lorenzo Cappellari
Author-X-Name-First: Lorenzo 
Author-X-Name-Last: Cappellari
Author-Email: lorenzo.cappellari@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica
Author-Name: Marco Leonardi
Author-X-Name-First: Marco 
Author-X-Name-Last: Leonardi
Author-Email: marco.leonardi@unimi.it
Author-Workplace-Name: Dipartimento di Studi del Lavoro, Università di Milano
Title: Earnings Instability and Tenure
Abstract: This paper develops a tractable empirical approach to estimate the effect of on-the-job tenure on the permanent 
and transitory variance of earnings. The model is also used to evaluate the earnings instability associated with fixed-term 
contract (short-tenure contracts) in Italy. Our results indicate that each year of tenure on the job reduces earnings instability 
on average by 15%. Workers on a fixed-term contract on average have an earnings instability 10% higher than workers on a permanent 
contract. Workers who spend their entire working life on fixed-term contracts can expect an earnings instability twice as high.
Length: 31
Creation-Date: 2007-03
File-URL: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro/Quaderni/ieil0048.pdf
File-Format: Application/pdf
File-Function: First version, 2007
Number: ieil0048
Classification-JEL: C23 J21 J31
Keywords: earnings instability, earnings dynamics, tenure, temporary contracts, minimum distance estimation.
Handle: RePEc:ctc:serie4:ieil0048