Enforcement of employment security regulations, on-the-job search and unemployment duration
AbstractContrary to the popular wisdom, âscleroticâ European labour markets are characterized by relatively large job turnover rates. A model is developed which â unlike standard theories of job matching with on-the-job search â can account for the coexistence of strict employment security regulations, significant job-to-job shifts and high long-term unemployment rates in these countries. This is because: i) employment security regulations can only be enforced by increasing the number of workers on âshort-term jobsâ; and ii) the latter compete for jobs with unemployed jobseekers. Evidence is presented, showing that job finding probabilities of the unemployed are decreasing in the incidence of temporary employment, in line with the predictions of the model.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 43 (1999)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Boeri, Tito, 1998. "Enforcement of Employment Security Regulations, On-The-Job Search and Unemployment Duration," CEPR Discussion Papers 1850, C.E.P.R. Discussion Papers.
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
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.:
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