Fixed-Term Contracts and Labor Market Duality in France

Clémence Berson

De Economist, 2018, vol. 166, issue 4, No 4, 455-476

Abstract: Abstract The French labor market is segmented between permanent and temporary workers. The second category has difficulty in getting an open-ended contract. This paper aims at depicting workers on short-term contracts and shows the consequences on their professional career are negative and significant. A large part of the wage gap between permanent and temporary workers remains unexplained by observable characteristics. They receive less on-the-job training and their likelihood of obtaining a stable job is lower than 30% after 1 year and a half. They have also a higher probability of being the adjustment variable in case of an economic negative shock. These different findings show the importance of using public policies to encourage transitions from fixed-term to permanent employment and reducing labor-market duality.

Keywords: Fixed-term contracts; Atypical labor contracts; Duality (search for similar items in EconPapers)
JEL-codes: J21 J42 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10645-018-9318-y

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