Güell-Rotllan, MaiaPetrongolo, BarbaraUniversidad Carlos III de Madrid. Departamento de Economía2009-12-152009-12-151998-112340-5031https://hdl.handle.net/10016/6080Since fixed-term contracts were introduced in Spain, 98% of all new contracts have been of this type. Despite this massive flexibilisation of the labour market, Spanish unemployment still hits more than 20% of the labour force. To assess the effects of the introduction of fixed-term contracts on the labour market it is important to understand the dynamics of the conversion of temporary contracts into permanent ones. To address this issue we estimate a duration model for temporary employment, with competing risks of flowing into permanent employment versus non-employment, and flexible duration dependence. Preliminary results show that the probability of obtaining the renewal of a fixed-term contract on a permanent basis is not affected by the state of the business cycle. At the same time, the base-line hazard for renewals has a spike at three years of duration, coinciding with the legal limit of fixed-term contracts.application/pdfengAtribución-NoComercial-SinDerivadas 3.0 EspañaFixed-term contractsTurnoverDual labour marketsworking paperEconomíaopen access