Worker turnover and job reallocation: the role of fixed-term contracts

This paper analyses the role of fixed-term contracts in bringing about simultaneous worker flows and worker and job turnover in Spain. After exploring the issue that hirings (separations) are not restricted to growing (declining) establishments and that most firms are simultaneously engaged in hiring and separating workers, the extent of total worker turnover and its components is computed by contractual status. The findings are that worker and job turnover is higher for temporary employment and that fixed-term contracts are used mainly for rotation purposes (although they also account for the majority of job creation and destruction).