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On the other, much of the labor force -- more than in other European countries -- is employed under temporary contracts with few protections.
They will be able to stay at work under temporary contracts until the actual date of privatisation, although at least half are expected to leave beforehand.
I find cyclicality for workers under temporary contracts is twice as large as for workers under permanent contracts.
Wage cyclicality in a rigid labour market like Spain is mainly driven by workers under temporary contracts and newly-hired workers.
A key assumption in their model is that workers under temporary contracts can be dismissed at will while those under permanent contracts can never be fired.
On the other hand, workers under temporary contracts have much lower severance payments and do not face legal proceedings when the contract expires.
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In the rich world, it is estimated that a third of under-24s are on temporary contracts; in developing countries a fifth are unpaid labourers or work in the informal sector.
A small number of A.U.P. staff, typically those who fill in for faculty members on parental leave or sabbatical, are hired under fixed-term, temporary contracts known as C.D.D., or "contrat à durée determinée".
Among the young, the proportion of jobs that are part-time has exploded from 8% in 2000 to 23% in 2010; the proportion of workers under 25 on temporary contracts has leapt from zero to 28%.
The result I find on different wage cyclicality estimates for workers under permanent and temporary contracts mirrors the duality in the Spanish labour market.
Rows (4) and (5) in Table 3 show that wage cyclicality of workers under a temporary contract exceeds that of workers under a permanent contract by a factor of two.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com