Explaining the spread of temporary jobs and its impact on labor turnover

Pierre Cahuc; Olivier Charlot; Franck Malherbet

doi:10.1111/iere.12167

Explaining the spread of temporary jobs and its impact on labor turnover

Pierre Cahuc, Olivier Charlot, Franck Malherbet

Research output: Contribution to journal › Article › peer-review

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.

Original language	English
Pages (from-to)	533-572
Number of pages	40
Journal	International Economic Review
Volume	57
Issue number	2
DOIs	https://doi.org/10.1111/iere.12167
Publication status	Published - 1 May 2016
Externally published	Yes

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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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AB - 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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Explaining the spread of temporary jobs and its impact on labor turnover

Abstract

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