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Screening and short-term contracts

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  • D. Paolini

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Abstract

This article studies the behavior of the firm when it is searching to fill a vacancy. The principal hypothesis is that the firm can offer two kinds of contracts to the workers, short-term or long-term contracts. We suppose that the worker’s bargaining power over the wage is different according to the type of contract. We utilize this framework to study the firms’ optimal policy choice and its welfare implications.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200819.

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Date of creation: 2008
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Handle: RePEc:cns:cnscwp:200819

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Keywords: search; temporary employment;

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  1. Wasmer, E., 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," DELTA Working Papers 97-13, DELTA (Ecole normale supérieure).
  2. Jovanovic, Boyan, 1984. "Matching, Turnover, and Unemployment," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 108-22, February.
  3. D. Paolini, 2007. "Search and the Firm's Choice of the Optimal Labor Contract," Working Paper CRENoS 200708, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  5. Paolini, Dimitri, 2000. "Two-Sided Search and Temporary Employment," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2000011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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