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Fixed-Term Contracts and Labor Market Duality in France

Author

Listed:
  • Clémence Berson

    () (University Paris 1)

Abstract

The French labor market is segmented between permanent and temporary workers. The second category has difficulty in getting an open-ended contract. This paper aims at depicting workers on short-term contracts and shows the consequences on their professional career are negative and significant. A large part of the wage gap between permanent and temporary workers remains unexplained by observable characteristics. They receive less on-the-job training and their likelihood of obtaining a stable job is lower than 30% after 1 year and a half. They have also a higher probability of being the adjustment variable in case of an economic negative shock. These different findings show the importance of using public policies to encourage transitions from fixed-term to permanent employment and reducing labor-market duality.

Suggested Citation

  • Clémence Berson, 2018. "Fixed-Term Contracts and Labor Market Duality in France," De Economist, Springer, vol. 166(4), pages 455-476, December.
  • Handle: RePEc:kap:decono:v:166:y:2018:i:4:d:10.1007_s10645-018-9318-y
    DOI: 10.1007/s10645-018-9318-y
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Fixed-term contracts; Atypical labor contracts; Duality;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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