Güell, MaiaPetrongolo, BarbaraUniversitat Pompeu Fabra. Departament d'Economia i Empresa2017-07-262017-07-262003-05-01Labour Economics, 14 (2), 153-183, 2007http://hdl.handle.net/10230/633This paper studies the duration pattern of xed-term contracts and the determinants of their conversion into permanent ones in Spain, where the share of xed-term employment is the highest in Europe. We estimate a duration model for temporary employment, with competing risks of terminating into permanent employment versus alternative states, and exible duration dependence. We nd that conversion rates are generally below 10%. Our estimated conversion rates roughly increase with tenure, with a pronounced spike at the legal limit, when there is no legal way to retain the worker on a temporary contract. We argue that estimated di¤erences in conversion rates across categories of workers can stem from di¤erences in worker outside options and thus the power to credibly threat to quit temporary jobs.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commonsinfo:eu-repo/semantics/workingPaperfixed-term contractsduration modelsLabour, Public, Development and Health Economicsinfo:eu-repo/semantics/openAccess