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Job Protection, Housing Market Regulation and the Youth

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Abstract

Young Europeans experience high unemployment rates, job instability and late emancipation. Meanwhile they do not support reforms weakening protection on long-term contracts. In this paper, we suggest a possible rationale for such reform distaste. When the rental market is very regulated, landlords screen applicants with regard to their ability to pay the rent. Protecting regular jobs offers a second-best technology to sort workers, thereby increasing the rental market size. We provide a model where non-employed workers demand protected jobs despite unemployment and the share of short-term jobs increase, whereas rents, wages and the individual risk of dismissal are unaffected.

Suggested Citation

  • Antoine Bonleu & Bruno Decreuse & Tanguy Van Ypersele, 2016. "Job Protection, Housing Market Regulation and the Youth," AMSE Working Papers 1636, Aix-Marseille School of Economics, France.
    • Handle: RePEc:aim:wpaimx:1636
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    Cited by:

    1. C. Devillers & K. Parra Ramirez, 2017. "French Banks confirm their fourth rank in international banking," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 31-44, Spring.
    2. repec:bfr:quarte:2016:45:03 is not listed on IDEAS
    3. B. Bureau & M. Bürker & T. Libert, 2017. "The financial situation of companies in France in 2015," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 53-69, Spring.
    4. W. Arrata & A. Gautier & P. Lopez & I. Rahmouni-Rousseau & M. Girotti & B. Mojon & U. Szczerbowicz & M. Vari & T. Foucault, 2017. "12th Annual Central Bank Workshop on the Microstructure of Financial Markets 29-30 September 2016, Banque de France (Non-technical summary)," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 23-30, Spring.
    5. repec:bfr:quarte:2016:45:04 is not listed on IDEAS
    6. C. Berson & C. Malgouyres & S. Ray, 2017. "The labour market: institutions and reforms Summary of the third Labour Market Conference held in Aix-en-Provence on 1 and 2 December 2016 by the Aix-Marseille School of Economics and the Banque de Fr," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 45-52, Spring.
    7. repec:bfr:quarte:2016:45:06 is not listed on IDEAS
    8. repec:bfr:quarte:2016:45:05 is not listed on IDEAS
    9. A. Lalliard, 2017. "An alternative method for capturing tensions in the residential property market," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 5-13, Spring.
    10. repec:bfr:quarte:2016:45:01 is not listed on IDEAS
    11. L. Ferrara & G. Gauthier & F. Pappadà, 2017. "Fiscal consolidation episodes in OECD countries: the role of tax compliance and fiscal space," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 15-22, Spring.
    12. repec:bfr:quarte:2016:45:02 is not listed on IDEAS

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    More about this item

    Keywords

    labor market dualism; rent default; screening;
    All these keywords.

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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