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Dual Labour Markets Revisited

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  • Samuel Bentolila
  • Juan Jose Dolado
  • Juan F. Jimeno

Abstract

This paper provides an overview of recent research on dual labour markets. Theoretical and empirical contributions on the labour-market effects of dual employment protection legislation are revisited, as well as factors behind its resilience and policies geared towards correcting its negative consequences. The topics covered include the stepping-stone or dead-end nature of temporary contracts, their effects on employment, unemployment, churn, training, productivity growth, wages, and labour market inflows and outflows. The paper reviews both theoretical advances and relevant policy discussions, in particular in several countries that had very poor employment performance during the recent global economic and financial crisis.

Suggested Citation

  • Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2019. "Dual Labour Markets Revisited," CESifo Working Paper Series 7479, CESifo.
  • Handle: RePEc:ces:ceswps:_7479
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    References listed on IDEAS

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    2. Matteo Picchio & Mattia Filomena, 2021. "Are Temporary Jobs Stepping Stones Or Dead Ends? A Meta-Analytical Review Of The Literature," Working Papers 455, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Normann Rion, 2021. "Job creation in a dual labor market: a constructivist approach," Working Papers hal-03125344, HAL.
    4. Bertheau, Antoine & Acabbi, Edoardo & Barcelo, Cristina & Gulyas, Andreas & Lombardi, Stefano & Saggio, Raffaele, 2022. "The Unequal Cost of Job Loss across Countries," IZA Discussion Papers 15033, Institute of Labor Economics (IZA).
    5. Bratti, Massimiliano & Conti, Maurizio & Sulis, Giovanni, 2019. "Employment Protection and Firm-Provided Training: Quasi-Experimental Evidence from a Labour Market Reform," IZA Discussion Papers 12773, Institute of Labor Economics (IZA).
    6. Giammarco Alderotti & Raffaele Guetto & Paolo Barbieri & Stefani Scherer & Daniele Vignoli, 2022. "Unstable Employment Careers and Completed Fertility before and after Labour Market Deregulation in Italy," Econometrics Working Papers Archive 2022_03, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    7. Judit Krekó & Balázs Munkácsy & Márton Csillag & Ágota Scharle, 2022. "A job trial subsidy for youth:cheap labour or a screening device?," CERS-IE WORKING PAPERS 2222, Institute of Economics, Centre for Economic and Regional Studies.
    8. Iva Tomic, 2020. "Employment protection reforms and labour market outcomes in the aftermath of the recession: Evidence from Croatia," Public Sector Economics, Institute of Public Finance, vol. 44(1), pages 3-39.
    9. García-Perea, Pilar & Lacuesta, Aitor & Roldan-Blanco, Pau, 2021. "Markups and cost structure: Small Spanish firms during the Great Recession," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 137-158.
    10. Figueiredo, Ana & Marie, Olivier & Markiewicz, Agnieszka, 2024. "Job Security and Liquid Wealth," IZA Discussion Papers 16744, Institute of Labor Economics (IZA).
    11. Giorgio Cutuli & Alessio Tomelleri, 2023. "Returns to ICT Skills Use and Labour Market Institutions," FBK-IRVAPP Working Papers 2023-02, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    12. Bratti, Massimiliano & Conti, Maurizio & Sulis, Giovanni, 2021. "Employment protection and firm-provided training in dual labour markets," Labour Economics, Elsevier, vol. 69(C).

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    More about this item

    Keywords

    dual labour markets; employment protection; temporary contracts; job creation; job destruction; churn;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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