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

By Pierre Cahuc, Olivier Charlot, Franck Malherbet. Social Science Research Network, 2016

172 citations recorded by the source corpus.

This article provides a simple model that 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 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.

Subfields: Economics and Econometrics, General Health Professions

View Paper: https://www.semanticscholar.org/paper/645a44862a39278801da6e9863404ada6db9db1e

Citations in the corpus

• Two‐Tier Labour Markets in the Great Recession: France Versus Spain-super- (2012, unknown): “Yet, allowing for heterogenous arrival rates is beyond the scope of this study; see Cahuc et al. (2012).”