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The effect of temporary contracts on job security of permanent workers

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  • Koutentakis, Franciscos

Abstract

The paper employs a simple dynamic model of dual labour demand and finds that temporary labour carries a potential negative effect on job security of permanent workers. This effect increases with the wage differential and decreases with the firing cost.

Suggested Citation

  • Koutentakis, Franciscos, 2008. "The effect of temporary contracts on job security of permanent workers," Economics Letters, Elsevier, vol. 101(3), pages 220-222, December.
    • Handle: RePEc:eee:ecolet:v:101:y:2008:i:3:p:220-222
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    References listed on IDEAS

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    1. Bertola, Giuseppe, 1990. "Job security, employment and wages," European Economic Review, Elsevier, vol. 34(4), pages 851-879, June.
    2. Maia Guell, 2000. "Fixed-term Contracts and Unemployment: an Efficiency Wage Analysis," Working Papers 812, Princeton University, Department of Economics, Industrial Relations Section..
    3. Tito Boeri & Pietro Garibaldi, 2007. "Two Tier Reforms of Employment Protection: a Honeymoon Effect?," Economic Journal, Royal Economic Society, vol. 117(521), pages 357-385, June.
    4. Guell, Maia, 2000. "Fixed-term contracts and unemployment: an efficiency wage analysis," LSE Research Online Documents on Economics 20181, London School of Economics and Political Science, LSE Library.
    5. Maia Guell, 2000. "Fixed-term Contracts and Unemployment: an Efficiency Wage Analysis," Working Papers 812, Princeton University, Department of Economics, Industrial Relations Section..
    6. Samuel Bentolila & Juan J. Dolado, 1994. "Labour Flexibility and Wages: Lessons from Spain," Working Papers wp1994_9406, CEMFI.
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    Cited by:

    1. You, Jing & Wang, Shaoyang, 2018. "Unemployment duration and job-match quality in urban China: The dynamic impact of 2008 Labor Contract Law," Economic Modelling, Elsevier, vol. 71(C), pages 220-233.
    2. Sergio Scicchitano & Marco Biagetti & Antonio Chirumbolo, 2020. "More insecure and less paid? The effect of perceived job insecurity on wage distribution," Applied Economics, Taylor & Francis Journals, vol. 52(18), pages 1998-2013, April.
    3. Simona COMI & Mara GRASSENI, 2009. "Are Temporary Workers Discriminated Against? Evidence from Europe," CHILD Working Papers wp17_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    4. Dilyana Dimova, 2019. "The Structural Determinants of the Labor Share in Europe," IMF Working Papers 2019/067, International Monetary Fund.
    5. Amendola, Marco & Ciampa, Valerio & Germani, Lorenzo, 2024. "The distributional effects of labour market deregulation: Wage share and fixed-term contracts," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 328-338.
    6. Berton, Fabio & Migheli Matteo, 2015. "Estimating the marginal rate of substitution between wage and employment protection," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201529, University of Turin.
    7. Lehner, Lukas & Ramskogler, Paul & Riedl, Aleksandra, 2022. "Begging thy coworker – Labor market dualization and the slow-down of wage growth in Europe," INET Oxford Working Papers 2022-04, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.

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