Differential Employment Prospects among Atypical Employees: Effects of Type of Contract or Worker Preference?

In this study we analyze transitions from atypical to regular employment in Germany, focusing on the effects of different types of atypical employment on the transition probability into full-time and long-term employment. The predictions are tested using discrete-time duration models with random effects. The empirical results confirm the importance of the type of work contract. Fixed-term employment shows the highest transition probabilities into regular employment, compared with agency work and regular part-time employment, while marginal employment yields the lowest chances of upward mobility. These effects can neither be explained by differences in the observed characteristics nor by the preferences for shorter working-hours by part-time employees