On Short-term Contracts Regulations
[ENGLISH] We present a theoretical as well as an empirical analysis of the impact of employment regulations on permanent and temporary employment. We consider three different forms of regulations, namely insiders protection, fixed term contracts regulations, and temporary work agencies legislation and present some empirical evidence for total, female and young employees based on a panel of nine European countries. We show that these three forms of regulations have a differentiated impact on the employment performance of those countries. Besides, these institutions act in an asymmetric way along the business cycle. Among the various findings: lower employment protection leads to a substitution of permanent employees in favour of temporary ones with an unsignificant net effect on the total; looser fixed term contracts regulations have a beneficial effect on young temporary as well as permanent employment; flexible temporary work agencies regulations have a positive impact on temporary employment, while possibly reducing permanent employment. [ITALIANO] In questo contributo analizziamo gli effetti della employment regulation sull'occupazione, sia da un punto di vista teorico che empirico, distinguendo tra lavoratori temporanei e permanenti. Tra le forme di regolamentazione nel mercato del lavoro consideriamo la normativa sui licenziamenti, sui contratti a termine e sulle agenzie di lavoro interinale. L'evidenza empirica, relativa ad un panel di 9 paesi europei, esamina gli effetti di queste istituzioni sull'occupazione totale, giovanile e femminile, distinguendo tra le diverse fasi del ciclo economico. Tra i principali risultati otteniamo che la flessibilita' nei licenziamenti porta a sostituzione di occupazione permanente con occupazione temporanea, con effetti non significativi sul totale; la liberalizzazione dei contratti a termine ha effetti positivi sull'occupazione giovanile, sia temporanea che permanente; la liberalizzazione delle agenzie di lavoro temporaneo ha effetti positivi sull'occupazione temporanea ma riduce l'occupazione permanente.
|Date of creation:||May 2001|
|Date of revision:|
|Contact details of provider:|| Postal: Piazzale Martelli, 8, 60121 Ancona|
Phone: +39 071 220 7100
Fax: +39 071 220 7102
Web page: http://www.dises.univpm.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
- Saint-Paul, Gilles, 1999.
"Assessing the Political Viability of Labour Market Reform: The Case of Employment Protection,"
CEPR Discussion Papers
2136, C.E.P.R. Discussion Papers.
- Gilles Saint-Paul, 1999. "Assessing the political viability of labor market reform : the case of employment protection," Review, Federal Reserve Bank of St. Louis, issue May, pages 73-87.
- Gilles Saint Paul, 1998. "Assesing the political viability of labour market reform: The case of employment protection," Economics Working Papers 346, Department of Economics and Business, Universitat Pompeu Fabra.
- 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.
- Bertola, Giuseppe, 1991.
"Labour Turnover Costs and Average Labour Demand,"
CEPR Discussion Papers
601, C.E.P.R. Discussion Papers.
- Pesaran, M. Hashem & Smith, Ron, 1995.
"Estimating long-run relationships from dynamic heterogeneous panels,"
Journal of Econometrics,
Elsevier, vol. 68(1), pages 79-113, July.
- Pesaran, M.H. & Smith, R., 1992. "Estimating Long-Run Relationships From Dynamic Heterogeneous Panels," Cambridge Working Papers in Economics 9215, Faculty of Economics, University of Cambridge.
- Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-52, Special I.
- Belot, Michèle & van Ours, Jan C., 2000.
"Does the Recent Success of Some OECD Countries in Lowering their Unemployment Rates Lie in the Clever Design of their Labour Market Reform?,"
IZA Discussion Papers
147, Institute for the Study of Labor (IZA).
- Michèle Belot & Jan C. van Ours, 2004. "Does the recent success of some OECD countries in lowering their unemployment rates lie in the clever design of their labor market reforms?," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 621-642, October.
- Belot, M.V.K. & van Ours, J.C., 2000. "Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?," Discussion Paper 2000-40, Tilburg University, Center for Economic Research.
- Belot, Michèle & van Ours, Jan C, 2000. "Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?," CEPR Discussion Papers 2492, C.E.P.R. Discussion Papers.
- Stephen Nickell & Luca Nunziata, 2000.
"Employment patterns in OECD countries,"
LSE Research Online Documents on Economics
20198, London School of Economics and Political Science, LSE Library.
- Samuel Bentolila & Giuseppe Bertola, 1990. "Firing Costs and Labour Demand: How Bad is Eurosclerosis?," Review of Economic Studies, Oxford University Press, vol. 57(3), pages 381-402.
- Cahuc, Pierre & Postel-Vinay, Fabien, 2002.
"Temporary jobs, employment protection and labor market performance,"
Elsevier, vol. 9(1), pages 63-91, February.
- 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).
- Maia Güell & Barbara Petrongolo, 2000. "Workers Transitions from Temporary to Permanent Employment: the Spanish Case," CEP Discussion Papers dp0438, Centre for Economic Performance, LSE.
- Baltagi, Badi H. & Li, Qi, 1995. "Testing AR(1) against MA(1) disturbances in an error component model," Journal of Econometrics, Elsevier, vol. 68(1), pages 133-151, July.
- Olivier Blanchard & Justin Wolfers, 1999.
"The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence,"
NBER Working Papers
7282, National Bureau of Economic Research, Inc.
- Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March.
- Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary jobs: who gets them, what are they worth, and do they lead anywhere?," ISER Working Paper Series 2000-13, Institute for Social and Economic Research.
- P Adam & P Canziani, 1998. "Partial De-Regulation: Fixed-Term Contracts in Italy and Spain," CEP Discussion Papers dp0386, Centre for Economic Performance, LSE.
- Olivier Blanchard & Augustin Landier, 2001. "The Perverse Effects of Partial Labor Market Reform: Fixed Duration Contracts in France," NBER Working Papers 8219, National Bureau of Economic Research, Inc.
- Bertola, Giuseppe & Ichino, Andrea, 1995. "Wage Inequality and Unemployment: US vs Europe," CEPR Discussion Papers 1186, C.E.P.R. Discussion Papers.
- Marcelo Veracierto, 2000. "What are the short-run effects of increasing labor market flexibility?," Working Paper Series WP-00-29, Federal Reserve Bank of Chicago.
When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:150. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maurizio Mariotti)
If references are entirely missing, you can add them using this form.