Voluntary Mobility of Employees for Better Job Opportunities Given a Temporary Contract: Insights Regarding an Age-Varying Association Between the Two Events

Abstract

Abstract What mechanisms govern the mobility of employees who voluntarily switch employers for better opportunities, given a temporary contract (TC)? We attempt to answer this question by exploring this issue in Southern and Central European countries. We use cross-sectional data from the European Union Statistics on Income and Living Conditions survey for the 2005–2016 period. We estimate a flexible simultaneous equation model for binary responses by assuming the presence of an age-varying association between voluntary mobility and having a TC. After accounting for several socio-demographic and economic variables, we find a nonlinear decreasing relation between age and the outcomes, while we detect heterogeneous nonlinear patterns in the association between voluntary mobility and having a TC across countries. These insights can support policy-makers aiming to promote initiatives that facilitate the professional mobility of employees given a TC for an efficient allocation of human capital in the production system.