EXPLAINING THE SPREAD OF TEMPORARY JOBS AND ITS IMPACT ON LABOR TURNOVER

Pierre Cahuc · Olivier Charlot · Franck Malherbet

119 citations0/0 files storedInternational Economic Review

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Labor market dynamics and wage inequality Employment, Labor, and Gender Studies Employment and Welfare Studies

Abstract

This article provides a simple model that explains the choice between permanent and temporary jobs. This model, which incorporates important features of actual employment protection legislations neglected by the economic literature so far, reproduces the main stylized facts about entries into permanent and temporary jobs observed in Continental European countries. We find that job protection has very small effects on total employment but induces large substitution of temporary jobs for permanent jobs, which significantly reduces aggregate production.

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References

1994Job Creation and Job Destruction in the Theory of Unemployment 2005The Cyclical Behavior of Equilibrium Unemployment and Vacancies n.d.Looking into the Black Box: A Survey of the Matching Function 2003Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing 1990Job Security Provisions and Employment 2002Temporary Jobs: Stepping Stones or Dead Ends?2009The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer?2000Equilibrium Unemployment Theory - 2nd Edition

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2013Reassessing Labour Market Reforms: Temporary Contracts as a Screening Device 2023The Effects of Partial Employment Protection Reforms: Evidence from Italy 2022It ain’t where you’re from, it’s where you’re at: Hiring origins, firm heterogeneity, and wages 2014Jobs and Growth: Supporting the European Recovery

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