Absence of Stepping-Stone Effect in Temporary Employment

Download image · 1200 × 630 PNG

In Simple Words

Think of getting a temporary trial pass to a gym that expires after a few months. While using the temporary pass gets a person onto the exercise floor immediately, it does not guarantee a permanent gym membership once the trial period ends. When the trial pass expires, the person is right back at square one looking for a way into the building.

Young graduates in program areas

No offer in a program area
Group used for comparison
Offer in a program area
No clear increase in permanent employment

The employment gain came through fixed-term contracts; no increase in permanent contracts was detected. This is not proof of an exactly zero effect. Eight-month within-area comparison. Short-term gains involved fixed-term jobs and disappeared by twelve months.

See source →

Research question

Active labor market programs often aim to place unemployed workers into short-term or fixed-term positions under the assumption that early work experience serves as a stepping stone toward permanent employment. However, short-term contract placements may fail to build durable human capital or employer trust, leaving long-term employment trajectories unimproved.

Participants

Nearly 30,000 young, college-educated job seekers in France (mid-twenties, at least a two-year degree, unemployed for at least six months) across 235 communities.

Study Design

Clustered randomized controlled trial tracking treated and comparison job seekers over a nearly two-year follow-up period (at 8, 12, and 20 months).

Results

Short-term employment gains at eight months were driven entirely by job seekers finding fixed-term contracts with zero increase in permanent employment contracts, and all employment advantages vanished completely after twelve months.

Takeaway

Evaluate job placement program success using permanent employment contract metrics rather than short-term or temporary placement rates.

Source and citation

See source →

Read alongside the research

Plain-English glossary

Original explanations, informed by the references below. Examples are illustrations, not data from the studies above. The research text stays unchanged.

Follow-up

Collecting more information about participants later in a study to see what has happened to them. The term can also mean the length of time researchers keep track of them.

ExampleResearchers interview the same workers three months after a programme ends. That later interview is a follow-up.

GET-IT glossary · Follow-up ↗Read more about follow-up →
Randomized controlled trial

A study that uses chance, like drawing lots, to decide who receives each option being compared. Researchers compare the groups’ outcomes to estimate the effect of those options.

ExampleA lottery assigns volunteers to a training programme or a comparison group. Researchers then compare their outcomes.

GET-IT glossary · Randomized study ↗Read more about randomized controlled trial →

Related findings