@TechReport{iza:izadps:dp9777, author={Perez, J. Ignacio Garcia and Marinescu, Ioana E. and Castello, Judit Vall}, title={Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain}, year={2016}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={9777}, url={https://www.iza.org/publications/dp9777}, abstract={By reducing the commitment made by employers, fixed-term contracts can help low-skilled youth find a first job. However, the long-term impact of fixed-term contracts on these workers' careers may be negative. Using Spanish social security data, we analyze the impact of a large liberalization in the regulation of fixed-term contracts in 1984. Using a cohort regression discontinuity design, we find that the reform raised the likelihood of male high-school dropouts working before age 19 by 9%. However, in the longer run, the reform reduced number of days worked (by 4.5%) and earnings (by 9%).}, keywords={temporary contracts;long-term impact;labour market career}, }