Competition for Jobs in a Growing Economy and the Emergence of Dualism

Etienne Wasmer

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We aim to explain the rising share of short-term employment in Europe using a matching model with growth. We find that a slow-down in growth of labour productivity leads to the emergence of temporary (short-term) jobs that explains their increasing share in total employment. Lower growth rates also shift the "Beveridge curve" to the right and weaken the bargaining position of workers. These effects generate a relation between growth and unemployment, which can be negative when the adverse effect of growth on wage setting dominates over its positive effect on labour demand. In addition, higher population growth increases the share of temporary jobs and unemployment. Finally, the often blamed firing costs are found to be neutral when there is no floor on wages.

Date: 1997-10
References: Add references at CitEc
Citations: View citations in EconPapers (26)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Competition for Jobs in a Growing Economy and the Emergence of Dualism (1999)
Working Paper: Competition for Jobs in a Growing Economy and the Emergence of Dualism (1997)
Working Paper: Competition for Jobs in a Growing Economy and the Emergence of Dualism (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0369

Access Statistics for this paper

More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().