The Perverse Effects of Partial Labour Market Reform: fixed--Term Contracts in France
AbstractWe argue that the effects of a partial reform of employment protection by allowing firms to hire workers on fixed--term contracts may be perverse. The main effect may be high turnover in entry--level jobs, leading to higher, not lower, unemployment. Even if unemployment falls, workers may be worse off, going through many spells of unemployment and entry--level jobs, before obtaining a regular job. Considering French data for young workers since the early 1980s, we conclude that the reforms have substantially increased turnover, without a substantial reduction in unemployment duration. If anything, the effect on their welfare appears to have been negative. Copyright 2002 Royal Economic Society
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 112 (2002)
Issue (Month): 480 (June)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Â¿Por quÃ© han divergido tanto las tasas de paro en EspaÃ±a y Francia en la Gran RecesiÃ³n?
by Samuel Bentolila in Nada Es Gratis on 2011-02-01 07:30:04
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