Competition for Jobs in a Growing Economy and the Emergence of Dualism
AbstractThe objective of the article is to explain the rising share of short-term employment in Europe. In a matching model, it is shown that a slowdown in the growth of labor productivity leads to the emergence of temporary (short-term) jobs and increases their share of total employment. Higher population growth also increases the share of temporary jobs. Finally, the much blamed firing costs are found to be neutral when there is no floor on wages. In addition, in periods of low growth, the rise in the share of short-term jobs weakens workers' bargaining position.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 109 (1999)
Issue (Month): 457 (July)
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Other versions of this item:
- E Wasmer, 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," CEP Discussion Papers dp0369, Centre for Economic Performance, LSE.
- Etienne Wasmer, 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," Working Papers 97-15, Centre de Recherche en Economie et Statistique.
- Wasmer, E., 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," DELTA Working Papers 97-13, DELTA (Ecole normale supérieure).
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