Job Protection, Housing Market Regulation and the Youth

Antoine Bonleu (), Bruno Decreuse and Tanguy van Ypersele

Working Papers from HAL

Abstract: Young Europeans experience high unemployment rates, job instability and late emancipation. Meanwhile they do not support reforms weakening protection on long-term contracts. In this paper, we suggest a possible rationale for such reform distaste. When the rental market is very regulated, landlords screen applicants with regard to their ability to pay the rent. Protecting regular jobs offers a second-best technology to sort workers, thereby increasing the rental market size. We provide a model where non-employed workers demand protected jobs despite unemployment and the share of short-term jobs increase, whereas rents, wages and the individual risk of dismissal are unaffected.

Keywords: labor market dualism; rent default; screening (search for similar items in EconPapers)
Date: 2016-10
New Economics Papers: this item is included in nep-law and nep-ure
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01376582
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Citations: View citations in EconPapers (12)

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Related works:
Journal Article: Job protection, housing market regulation, and the youth (2019)
Working Paper: Job Protection, Housing Market Regulation and the Youth (2019)
Working Paper: Job Protection, Housing Market Regulation and the Youth (2016)
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