Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?

Pierre Cahuc, Olivier Charlot, Franck Malherbet, Helène Benghalem () and Emeline Limon ()
Additional contact information
Helène Benghalem: University of Lausanne
Emeline Limon: University of Cergy-Pontoise

No 10352, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper analyzes the consequences of the taxation of temporary jobs recently introduced in several European countries to induce firms to create more open-ended contracts and to increase the duration of jobs. The estimation of a job search and matching model on French data shows that the taxation of temporary jobs does not reach its objectives: it reduces the mean duration of jobs and decreases job creation, employment and welfare of unemployed workers. We find that a reform introducing an open-ended contract without layout costs for separations occurring at short tenure would have opposite effects.

Keywords: taxation; employment protection legislation; temporary jobs (search for similar items in EconPapers)
JEL-codes: J63 J64 J68 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2016-11
New Economics Papers: this item is included in nep-dge, nep-eur, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - published in: Economic Journal, 2020, 130 (626), 422 - 445.

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https://docs.iza.org/dp10352.pdf (application/pdf)

Related works:
Journal Article: Taxation of Temporary Jobs: Good Intentions with Bad Outcomes? (2020)
Working Paper: Taxation of Temporary Jobs: Good Intentions with Bad Outcomes? (2020)
Working Paper: Taxation of Temporary Jobs: Good Intentions with Bad Outcomes? (2020)
Working Paper: Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ? (2017)
Working Paper: Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ? (2016)
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