THE STRUCTURE OF THE PERMANENT JOB WAGE PREMIUM: EVIDENCE FROM EUROPE by Lawrence M. Kahn, Cornell University, CESifo, IZA, and NCER (Queensland) Email:
[email protected] Postal Address: Cornell University 258 Ives Hall Ithaca, New York 14583 USA Phone: +607-255-0510 Fax: +607-255-4496 July 2013 Revised February 2014 * Preliminary draft. Comments welcome. The author is grateful to three anonymous referees for helpful comments and suggestions and to Alison Davies and Rhys Powell for their aid in acquiring the European Labour Force Survey regional unemployment rate data. This paper uses European Community Household Panel data (Users Database, waves 1-8, version of December 2003), supplied courtesy of the European Commission, Eurostat. Data are obtainable by application to Eurostat, which has no responsibility for the results and conclusions of this paper. 1 THE STRUCTURE OF THE PERMANENT JOB WAGE PREMIUM: EVIDENCE FROM EUROPE by Lawrence M. Kahn Abstract Using longitudinal data on individuals from the European Community Household Panel (ECHP) for thirteen countries during 1995-2001, I investigate the wage premium for permanent jobs relative to temporary jobs. The countries are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal, Spain, and the United Kingdom. I find that among men the wage premium for a permanent vs. temporary job is lower for older workers and native born workers; for women, the permanent job wage premium is lower for older workers and those with longer job tenure. Moreover, there is some evidence that among immigrant men, the permanent job premium is especially high for those who migrated from outside the European Union.