Transitions from Temporary to Permanent Work in Canada: Who Makes the Transition and Why?

The focus of this paper is on a microeconomic analysis of the annual transition rate from temporary to permanent work of individual workers in Canada for the period 1999-2004. Given that a large proportion of temporary employment is involuntary, an understanding of the factors associated with the transition to permanent work may inform public policy. Factors associated with the transition, namely, human capital, household structures and labour market segmentation are analyzed using data from the Statistics Canada's "Survey of Labour and Income Dynamics" (SLID) for the period 1999-2004, limited to paid workers aged 20-64 years, excluding students. Among the key factors associated with the transitions are younger age and low unemployment rates. The analysis adds to the Canadian and international literature on transitions from temporary to permanent work.