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Two-Sided Search and Temporary Employment

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Author Info

  • Paolini, Dimitri

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

The objective of this paper is to model explicitly the possibility to form temporary matching in a model of two-sided search. The agents (workers and employers) differ by their human quality endowment. In a search equilibrium agents form subintervals and are only matched to agents within their class. The introduction of a temporary market can have a positive impact on unemployment, but it may have a negative impact on low-skilled agents' utility. When a delay cost is introduced, this negative impact can be reduced especially if an education policy is implemented to decrease the heterogeneity of the human capital.

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File URL: http://sites.uclouvain.be/econ/DP/IRES/2000-11.pdf
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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2000011.

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Length: 25
Date of creation: 01 May 2000
Date of revision:
Handle: RePEc:ctl:louvir:2000011

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Related research

Keywords: Two-Sided Search; Matching; Temporary Employment;

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References

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  1. E Wasmer, 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," CEP Discussion Papers dp0369, Centre for Economic Performance, LSE.
  2. 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).
  3. BLOCH, Francis & RYDER, Harl, 1994. "Two-Sided Search, Marriages and Matchmakers," CORE Discussion Papers 1994028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Bentolila, Samuel & Saint-Paul, Gilles, 1992. "The macroeconomic impact of flexible labor contracts, with an application to Spain," European Economic Review, Elsevier, vol. 36(5), pages 1013-1047, June.
  5. Burdett, Ken & Coles, Melvyn G, 1997. "Marriage and Class," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 141-68, February.
  6. Saint-Paul, Gilles, 1992. "Are the Unemployed Unemployable?," CEPR Discussion Papers 689, C.E.P.R. Discussion Papers.
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Cited by:
  1. D. Paolini, 2008. "Screening and short-term contracts," Working Paper CRENoS 200819, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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