Year: 2012
Type: article
Abstract: The liberalisation of temporary contracts has led to a sizeable share of jobs covered by temporary contracts. This article proposes a matching model of unemployment in which temporary (fixed‐term) and permanent (open‐ended) jobs coexist in a long‐run equilibrium. From the labour demand standpoint, the choice of the type of contract leads to a trade‐off between an ex‐ante speed of hiring and an ex‐post flexible dismissal rate. Empirically, we test with Italian longitudinal data whether non‐employment spells that lead to a temporary job are shorter on average. The empirical evidence strongly supports our theoretical prediction.
Source: The Economic Journal
Authors: Fabio Berton, Pietro Garibaldi
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2133802746