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Employment protection reforms, employment and the incidence of temporary jobs in Europe: 1996-2001

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  • Kahn, Lawrence M.

Abstract

This paper uses longitudinal data on individuals from the European Community Household Panel over the 1996-2001 period to investigate the impact of reforms of employment protection systems in nine countries on the incidence of employment and of temporary jobs for wage and salary workers. Important features of the research design include the use of individual fixed effects models as well as the inclusion of country-specific trends in the dependent variable. A robust finding is that policies making it easier to create temporary jobs on average raise the likelihood that wage and salary workers will be in temporary jobs. This effect is felt primarily when the regional unemployment rate is relatively high. However, there is no evidence that such reforms raise employment. Thus, these reforms, while touted as a way of jump-starting individuals' careers in the job market, appear rather to encourage a substitution of temporary for permanent work.

Suggested Citation

  • Kahn, Lawrence M., 2010. "Employment protection reforms, employment and the incidence of temporary jobs in Europe: 1996-2001," Labour Economics, Elsevier, vol. 17(1), pages 1-15, January.
  • Handle: RePEc:eee:labeco:v:17:y:2010:i:1:p:1-15
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    Cited by:

    1. MacLeod, W. Bentley, 2011. "Great Expectations: Law, Employment Contracts, and Labor Market Performance," Handbook of Labor Economics, Elsevier.
    2. repec:spr:jlabrs:v:51:y:2017:i:1:d:10.1186_s12651-017-0231-7 is not listed on IDEAS
    3. Valeria Pulignano & Andrea Signoretti, 2016. "Union Strategies, National Institutions and the Use of Temporary Labour in Italian and US Plants," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 574-596, September.
    4. Jahn, Elke & Weber, Enzo, 2016. "Identifying The Substitution Effect Of Temporary Agency Employment," Macroeconomic Dynamics, Cambridge University Press, vol. 20(05), pages 1264-1281, July.
    5. Emmanuel Vazquez & Hernan Winkler, 2017. "How Is the Internet Changing Labor Market Arrangements? Evidence from Telecommunications Reforms in Europe," CEDLAS, Working Papers 0210, CEDLAS, Universidad Nacional de La Plata.
    6. Krzysztof Bartosik & Jerzy Mycielski, 2017. "The output employment elasticity and the increased use of temporary contracts: evidence from Poland," Working Papers 2017-23, Faculty of Economic Sciences, University of Warsaw.
    7. Sara Serra, 2016. "Temporary contracts' transitions: the role of training and institutions," Working Papers w201611, Banco de Portugal, Economics and Research Department.
    8. Holmlund, Bertil, 2014. "What do labor market institutions do?," Labour Economics, Elsevier, vol. 30(C), pages 62-69.
    9. Pierre Cahuc & Olivier Charlot & Franck Malherbet, 2016. "Explaining The Spread Of Temporary Jobs And Its Impact On Labor Turnover," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57, pages 533-572, May.
    10. repec:eee:labeco:v:46:y:2017:i:c:p:64-76 is not listed on IDEAS
    11. Sachs Andreas & Smolny Werner, 2015. "Youth Unemployment in the OECD: The Role of Institutions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 403-417, August.
    12. Cahuc, Pierre & Charlot, Olivier & Malherbet, Franck & Benghalem, Helène & Limon, Emeline, 2016. "Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?," IZA Discussion Papers 10352, Institute for the Study of Labor (IZA).
    13. Werner Eichhorst & Paul Marx & Caroline Wehner, 2017. "Labor market reforms in Europe: towards more flexicure labor markets?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 51(1), pages 1-17, December.
    14. Salvatori, Andrea, 2010. "Labour contract regulations and workers' wellbeing: International longitudinal evidence," Labour Economics, Elsevier, vol. 17(4), pages 667-678, August.
    15. W.J. Liebregts & F.C. Stam, 2016. "Employment protection and entrepreneurship : Unpacking the effects of employment protection legislation on the allocation of entrepreneurial activity in society," Working Papers 16-08, Utrecht School of Economics.
    16. Anagnostopoulos, Achilleas & Siebert, Stanley, 2012. "The impact of Greek labour market regulation on temporary and family employment - evidence from a new survey," LSE Research Online Documents on Economics 46661, London School of Economics and Political Science, LSE Library.
    17. Anna Kosior & Michał Rubaszek & Kamil Wierus, 2015. "On the importance of the dual labour market for a country within a monetary union," NBP Working Papers 207, Narodowy Bank Polski, Economic Research Department.
    18. 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.
    19. Inmaculada Garcia & Colin Green & Maria Navarro Paniagua, 2012. "New Estimates of the Effect of Temporary Employment on Absenteeism," Working Papers 24151321, Lancaster University Management School, Economics Department.
    20. Kahn, Lawrence M., 2012. "Temporary jobs and job search effort in Europe," Labour Economics, Elsevier, vol. 19(1), pages 113-128.
    21. Marta Silva & Luis Filipe Martins & Helena Lopes, 2015. "Asymmetric labour market reforms and wage growth with fixed-term contracts: does learning about match quality matter?," Working Papers Series 2 15-04, ISCTE-IUL, Business Research Unit (BRU-IUL).
    22. Jean-Daniel Kant & Olivier Goudet & Gérard Ballot, 2016. "An ex ante evaluation of economic dismissals facilitation on the French labor market: An agent-based model," Post-Print hal-01511169, HAL.
    23. Gielen, Anne C. & Tatsiramos, Konstantinos, 2012. "Quit behavior and the role of job protection," Labour Economics, Elsevier, vol. 19(4), pages 624-632.
    24. You, Jing & Wang, Shaoyang, 2016. "Unemployment Duration and Job-Match Quality in Urban China: The Dynamic Impact of 2008 Labor Contract Law," MPRA Paper 72767, University Library of Munich, Germany.

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