Aggregate productivity slowdown and share of temporary workers

Nobuyuki Kanazawa

The Japanese Economic Review, 2025, vol. 76, issue 1, No 2, 53-89

Abstract: Abstract A dual labor market structure that comprises “permanent" and “temporary" jobs is common in many Continental European countries and Japan. Moreover, over the last 2 decades, the share of temporary workers in these countries has increased markedly. In this paper, I construct a search and matching model of a dual labor market with endogenous human capital accumulation and show that, in the presence of two different types of jobs with different rates of wage growth, slowing the aggregate productivity growth rate can prompt a substantial shift in the composition of jobs toward temporary jobs.

Keywords: Dual labor market; Growth; Unemployment; Temporary employment (search for similar items in EconPapers)
JEL-codes: E24 J64 O40 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s42973-023-00148-z

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