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
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 112 (2002)
Issue (Month): 480 (June)
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Olivier Blanchard & Pedro Portugal, 1998.
"What Hides Behind An Unemployment Rate: Comparing Portuguese and Us Unemployment,"
w199803, Banco de Portugal, Economics and Research Department.
- Olivier Blanchard & Pedro Portugal, 1998. "What Hides Behind an Umemployment Rate: Comparing Portuguese and U.S. Unemployment," NBER Working Papers 6636, National Bureau of Economic Research, Inc.
- Ricardo J. Caballero & Mohamad L. Hammour, 1996.
"The "Fundamental Transformation" in Macroeconomics,"
NBER Working Papers
5471, National Bureau of Economic Research, Inc.
- Caballero, Ricardo J & Hammour, Mohamad L, 1996. "The "Fundamental Transformation" in Macroeconomics," American Economic Review, American Economic Association, vol. 86(2), pages 181-86, May.
- Cahuc, Pierre & Postel-Vinay, Fabien, 2002.
"Temporary jobs, employment protection and labor market performance,"
Elsevier, vol. 9(1), pages 63-91, February.
- Cahuc, Pierre & Postel-Vinay, Fabien, 2001. "Temporary Jobs, Employment Protection and Labor Market Performance," IZA Discussion Papers 260, Institute for the Study of Labor (IZA).
- Thierry Magnac & Michael Visser, 1999.
"Transition Models With Measurement Errors,"
The Review of Economics and Statistics,
MIT Press, vol. 81(3), pages 466-474, August.
- P Adam & P Canziani, 1998. "Partial De-Regulation: Fixed-Term Contracts in Italy and Spain," CEP Discussion Papers dp0386, Centre for Economic Performance, LSE.
- Fougère, Denis & Kramarz, Francis & Magnac, Thierry, 2000.
"Youth Employment Policies In France,"
CEPR Discussion Papers
2394, C.E.P.R. Discussion Papers.
- Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August.
- Maia Güell & Barbara Petrongolo, 2000. "Workers Transitions from Temporary to Permanent Employment: the Spanish Case," CEP Discussion Papers dp0438, Centre for Economic Performance, LSE.
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
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.