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The Delalande Contribution and Transitions on The Labour Market

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  • Luc Behaghel

    (Université de Marne-la-Vallée, CEE and CREST-INSEE)

  • Bruno Crépon

    (CREST-INSEE)

  • Béatrice Sédillot

    (INSEE)

Abstract

The Delalande tax was introduced in 1987 to discourage companies from laying off workers over 50 years old. There are adverse effects to such a system. It can encourage firms to avoid hiring older workers so as not to risk being liable for this tax at a later date. This paper empirically evaluates the different effects on hirings and firings, drawing on the many changes made to the mechanism. The effect of cutting back on hiring older workers is studied on the basis of a change in 1992, which made workers hired after the age of 50 exempt from the scheme. In keeping with the theoretical predictions, we observe an improvement in the chances of returning to work for jobseekers over 50 compared with jobseekers under 50. This development does not appear to be due to other attendant changes such as the introduction of government-subsidised contracts for jobseekers over 50.

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Bibliographic Info

Article provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.

Volume (Year): 372 (2005)
Issue (Month): (February)
Pages: 61-88

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Handle: RePEc:crs:ecosta:es372c

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Keywords: Employment Protection; Older Workers; Layoff; Hiring;

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References

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  1. Luc BEHAGHEL, 2007. "La protection de l'emploi des travailleurs Âgés en France : une étude de la contribution Delalande," Annales d'Economie et de Statistique, ENSAE, issue 85, pages 41-80.
  2. Hernanz, Virginia & Jimeno, Juan Francisco & Kugler, Adriana D., 2003. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labour Market Reforms," CEPR Discussion Papers 3724, C.E.P.R. Discussion Papers.
  3. Dominique Goux & Eric Maurin & Marianne Pauchet, 1999. "Fixed-term Contracts and the Dynamics of Labour Demand," Working Papers 99-02, Centre de Recherche en Economie et Statistique.
  4. Mortensen, Dale T & Pissarides, Christopher A, 1999. "Unemployment Responses to 'Skill-Biased' Technology Shocks: The Role of Labour Market Policy," Economic Journal, Royal Economic Society, vol. 109(455), pages 242-65, April.
  5. Erich Battistin & Enrico Rettore, 2003. "Another look at the regression discontinuity design," CeMMAP working papers CWP01/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  6. Cahuc, Pierre & Malherbet, Franck, 2002. "Unemployment Compensation Finance and Labor Market Rigidity," IZA Discussion Papers 581, Institute for the Study of Labor (IZA).
  7. John M. Abowd & Francis Kramarz, 1997. "The Costs of Hiring and Separations," NBER Working Papers 6110, National Bureau of Economic Research, Inc.
  8. Patrick Aubert & Bruno Crépon, 2003. "La productivité des salariés âgés : une tentative d'estimation," Économie et Statistique, Programme National Persée, vol. 368(1), pages 95-119.
  9. Dale T. Mortensen & Christopher A. Pissarides, 1993. "Job Creation and Job Destruction in the Theory of Unemployment," CEP Discussion Papers dp0110, Centre for Economic Performance, LSE.
  10. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
  11. Patrick Aubert, 2003. "Les quinquagénaires dans l'emploi salarié privé," Économie et Statistique, Programme National Persée, vol. 368(1), pages 65-94.
  12. Antoine Bommier & Thierry Magnac & Muriel Roger, 2001. "Départs en retraite : évolutions récentes et modèles économiques," Revue Française d'Économie, Programme National Persée, vol. 16(1), pages 79-124.
  13. Olivier Blanchard & Augustin Landier, 2001. "The Perverse Effects of Partial Labor Market Reform: Fixed Duration Contracts in France," NBER Working Papers 8219, National Bureau of Economic Research, Inc.
  14. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
  15. Denis FOUGERE & Thierry KAMIONKA, 1992. "Un modéle markovien du marché du travail," Annales d'Economie et de Statistique, ENSAE, issue 27, pages 149-188.
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