Download This PaperExplaining the Spread of Temporary Jobs and its Impact on Labor Turnover
40 Pages Posted: 29 Apr 2016
Date Written: May 2016
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.
Suggested Citation: Suggested Citation
Cahuc, Pierre and Charlot, Olivier and Malherbet, Franck, Explaining the Spread of Temporary Jobs and its Impact on Labor Turnover (May 2016). International Economic Review, Vol. 57, Issue 2, pp. 533-572, 2016, Available at SSRN: https://ssrn.com/abstract=2772295 or http://dx.doi.org/10.1111/iere.12167
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