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• W13740231 abstract "Partial labor market deregulation has been widely used in Europe as a way to provide flexibility to the labor market. However, its full effects have been ambiguous. To better understand these effects we construct an equilibrium search and matching model of the labor market and examine the labor market impacts of various employment protection legislation policies, including temporary contracts deregulation. We explicitly model fixed-term contracts in an economy with worker and job heterogeneity and propose a novel mechanism for how temporary contract deregulation affects the employment decisions of firms, creating labor market segmentation. We look at the dismissal costs for both fixed-term and permanent contracts as a policy instrument and show how the interactions between temporary contract deregulation and the permanent employment protection legislation affect the unemployment rate, the incidence of temporary employment and the aggregate transition rates from temporary to permanent employment. We further show how differences in dismissal costs across countries lead to differences in the above labor market statistics. The model provides a framework for basic policy evaluation." @default.
• W13740231 created "2016-06-24" @default.
• W13740231 creator A5056167388 @default.
• W13740231 date "2007-01-01" @default.
• W13740231 modified "2023-09-26" @default.
• W13740231 title "Labor Market Consequences of Temporary and Permanent Employment Protection Legislation" @default.
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• W13740231 hasPublicationYear "2007" @default.
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