För ungas sysselsättning med allmän visstidsanställning - En kvantitativ studie av införandet av allmän visstidsanställning år 2007

Abstract

This paper aims to investigate if the Swedish government's reform of changes in the employment protection act, fulfilled one of its purposes when it comes to increasing employment for young people, after it was implemented in the year of 2007. This paper focuses on the theories developed by earlier studies regarding employment protection. Further, this study uses statistics provided by the Swedish statistical institute (SCB), with the aim to measure the relative employment rate for two different groups. Individuals in the ages of 16-34 years, are used as a treatment group. Individuals in the ages of 35-64 years, are used as a control group. We also compare groups based on industry, divided by the degree of temporary contracts typically present. The observed period is between 2001-2010. A part of the target for the reform was to increase the rate of employment for younger people, and making it easier for individuals to reach permanent employment, while at the same time enabling general fixed-term employment. For the study, a panel-data design was applied, using the provided data from SCB. Further, the methodology of difference-in-difference was implemented, and the two groups of treatment and control were formed, sorted by age and by industry, in order to investigate the impact of the reform. Results show a relatively weak statistically insignificant effect of the employment rate for young people in the ages of 16-34 years associated with the implementation of the reform 2007. Hence the reforms´ purpose of increasing the employment rate for young people appears to have been unsuccessful. However, to be raised as important is that the effects are imprecisely estimated. Further, the results show that up until the year of 2010, there cannot be demonstrated any significant effect regarding the implementation of the reform in the year of 2007. Hence, we find no evidence that the important parallel trend assumption is violated. Further studies of general fixed-term employment is needed, and with it, the incorporation between several institutions, such as the education system, unemployment insurance and the general macroeconomic development, which all affect the employment rate.