The impact of short-term employment contracts on employment volatility and economic fluctuations

Toyoki Matsue

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the effects of short-term employment contracts on employment fluctuations and economic fluctuations using a dynamic model with long-term and short-term employment contracts. Numerical experiments show that an increase in the short-term employment ratio amplifies the fluctuations in total employment—when an expected temporary productivity shock occurs—because of the variations in short-term employment being larger than those in long-term employment. Moreover, the large fluctuations in employment lead to the high variations in production and consumption. Promoting the utilization of short-term employment contracts would elicit the amplification of not only the employment fluctuations but also the economic fluctuations.

Keywords: employment fluctuations; short-term employment; labor contract; employment duration; labor market institutions (search for similar items in EconPapers)
JEL-codes: E24 E27 E32 J20 J41 (search for similar items in EconPapers)
Date: 2020-09-03
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/102731/1/MPRA_paper_102731.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/111364/1/MPRA_paper_111364.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/111453/1/MPRA_paper_111453.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/111742/1/MPRA_paper_111742.pdf revised version (application/pdf)

Related works:
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:pra:mprapa:102731

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().