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Two-tier labour market reform: a quantitative general equilibrium assessment

Claudio Campanale () and Francesco Turino

Applied Economics Letters, 2016, vol. 23, issue 13, 930-935

Abstract: In the 1990s several European countries liberalized the use of fixed-term labour contracts in an effort to reduce persistently low employment growth. This article studies the effect of these reforms through the lens of a version of the Hopenhayn and Rogerson (1993) model calibrated on Italian data. We find no effect of the reform on total employment in steady state.

Date: 2016
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DOI: 10.1080/13504851.2015.1122724

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