Two factors seem important. Employees with a labour contract two years before have a higher probability of having a permanent contract than employees without a contract two years before. Employees who have a job with a short training period have more often a temporary contract than employees with a job with a long training period. Furthermore the influence of having a temporary contract on career developments and income is investigated. Half of the employees with a temporary job acquire a permanent job within two years.
Temporary contracts have a significant negative impact on hourly wage.
The difference in wage rate between employees with a permanent job and those with a temporary job has decreased between 1986 and 1996. This article is about differences in the labour market position between flexible and permanent workers. We have tested this assumption using two different indicators of the career of workers, respectively changes in the job level and chances to become unemployed. Overall, the empirical results give some support to the assumptions of segmentation theory. This article is about the consequences of labour market flexibility for the position of ethnic minorities in the Netherlands.