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

Pierre Cahuc, Olivier Charlot and Franck Malherbet

No 6365, IZA Discussion Papers from Institute of Labor Economics (IZA)

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)
Pages: 55 pages
Date: 2012-02
New Economics Papers: this item is included in nep-dge, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

Published - published in: International Economic Review, 2016, 57 (2), 533-572

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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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