TY  - RPRT
        AU  - Cappellari, Lorenzo
AU  - Leonardi, Marco
        TI  - Earnings Instability and Tenure
        PY  - 2006/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2527
        UR  - https://www.iza.org/index.php/publications/dp2527
        AB  - This paper develops a tractable empirical approach to estimate the effect of on-the-job tenure on the permanent and the transitory variance of earnings. The model is also used to evaluate earnings instability associated with fixed-term contracts (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.
        KW  - temporary contracts
KW  - tenure
KW  - earnings dynamics
KW  - earnings instability
KW  - minimum distance estimation
        ER  -