Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ?
Franck Malherbet () and
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Helene Benghalem: CREST
No 974, 2017 Meeting Papers from Society for Economic Dynamics
This paper analyzes the consequences of the taxation of temporary jobs recently introduced in several European countries to induce fi rms 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 layoff costs for separations occurring at short tenure would have opposite effects.
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Working Paper: Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ? (2016)
Working Paper: Taxation of Temporary Jobs: Good Intentions with Bad Outcomes? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed017:974
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