Fixed-term employment in Norway and Sweden: A pathway to labour market marginalization?

We compare the effects of relatively liberal regulations on the use of temporary employment in Sweden and more restrictive rules in Norway. We find not only that temporary work may be a stepping stone out of unemployment but also that fixed-term employees are exposed to significant risks of long-term marginalization. Moreover, fixed-term employees in Sweden face greater risks of long-run unemployment and low earnings compared to those in Norway.