Flexicurity Pathways: An Experimental Analysis of the Single Contract
25 Pages Posted: 7 Feb 2012
Date Written: February 6, 2012
This work investigates the first European flexicurity pathway, which advocates relying on contractual arrangements that gradually entail better working conditions in order to address labour market segmentations. In the experiment, labour market environments only differ according to the level of contractual protections. In the base treatment with no protections, firms are allowed to make offers without restrictions to any worker, whereas in the main treatment, workers gain a right to receive an offer as the length of the working relationship increases. The results suggest that these contractual arrangements can improve labour market efficiency by reducing the unemployment level and increasing worker performance.
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