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On Short-term Contracts Regulations

Luca Nunziata () and Stefano Staffolani ()

No 150, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: [ENGLISH] We present a theoretical as well as an empirical analysis of the impact of employment regulations on permanent and temporary employment. We consider three different forms of regulations, namely insiders protection, fixed term contracts regulations, and temporary work agencies legislation and present some empirical evidence for total, female and young employees based on a panel of nine European countries. We show that these three forms of regulations have a differentiated impact on the employment performance of those countries. Besides, these institutions act in an asymmetric way along the business cycle. Among the various findings: lower employment protection leads to a substitution of permanent employees in favour of temporary ones with an unsignificant net effect on the total; looser fixed term contracts regulations have a beneficial effect on young temporary as well as permanent employment; flexible temporary work agencies regulations have a positive impact on temporary employment, while possibly reducing permanent employment. [ITALIANO] In questo contributo analizziamo gli effetti della employment regulation sull'occupazione, sia da un punto di vista teorico che empirico, distinguendo tra lavoratori temporanei e permanenti. Tra le forme di regolamentazione nel mercato del lavoro consideriamo la normativa sui licenziamenti, sui contratti a termine e sulle agenzie di lavoro interinale. L'evidenza empirica, relativa ad un panel di 9 paesi europei, esamina gli effetti di queste istituzioni sull'occupazione totale, giovanile e femminile, distinguendo tra le diverse fasi del ciclo economico. Tra i principali risultati otteniamo che la flessibilita' nei licenziamenti porta a sostituzione di occupazione permanente con occupazione temporanea, con effetti non significativi sul totale; la liberalizzazione dei contratti a termine ha effetti positivi sull'occupazione giovanile, sia temporanea che permanente; la liberalizzazione delle agenzie di lavoro temporaneo ha effetti positivi sull'occupazione temporanea ma riduce l'occupazione permanente.

Pages: 50
Date: 2001-05
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