Explaining the Spread of Temporary Jobs and its Impact on Labor Turnover

Pierre Cahuc, Franck Malherbet and Olivier Charlot

No 8864, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper provides a simple model which explains the choice between permanent and temporary jobs. This model, which incorporates important features of actual employment protection legislations neglected by the economic literature so far, reproduces the main stylized facts about entries into permanent and temporary jobs observed in Continental European countries. We show that the stringency of legal constraints on the termination of permanent jobs has a strong positive impact on the turnover of temporary jobs. We also find that job protection has very small effects on total employment but induces large substitution of temporary jobs for permanent jobs which significantly reduces aggregate production.

Keywords: Employment protection legislation; Temporary jobs (search for similar items in EconPapers)
JEL-codes: J63 J64 J68 (search for similar items in EconPapers)
Date: 2012-03
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (41)

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Related works:
Journal Article: EXPLAINING THE SPREAD OF TEMPORARY JOBS AND ITS IMPACT ON LABOR TURNOVER (2016)
Working Paper: Explaining the Spread of Temporary Jobs and Its Impact on Labor Turnover (2016)
Working Paper: Explaining the Spread of Temporary Jobs and its Impact on Labor Turnover (2014)
Working Paper: Explaining the Spread of Temporary Jobs and its Impact on Labor Turnover (2012)
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