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Screening and short-term contracts


  • D. Paolini



This article studies the behavior of the firm when it is searching to fill a vacancy. The principal hypothesis is that the firm can offer two kinds of contracts to the workers, short-term or long-term contracts. We suppose that the worker's bargaining power over the wage is different according to the type of contract. We utilize this framework to study the firms' optimal policy choice and its welfare implications.

Suggested Citation

  • D. Paolini, 2008. "Screening and short-term contracts," Working Paper CRENoS 200819, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  • Handle: RePEc:cns:cnscwp:200819

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    References listed on IDEAS

    1. Jovanovic, Boyan, 1984. "Matching, Turnover, and Unemployment," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 108-122, February.
    2. Cahuc, Pierre & Postel-Vinay, Fabien, 2002. "Temporary jobs, employment protection and labor market performance," Labour Economics, Elsevier, vol. 9(1), pages 63-91, February.
    3. Paolini, Dimitri, 2000. "Two-Sided Search and Temporary Employment," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2000011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. D. Paolini, 2007. "Search and the Firm's Choice of the Optimal Labor Contract," Working Paper CRENoS 200708, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    5. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    6. Wasmer, Etienne, 1999. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," Economic Journal, Royal Economic Society, vol. 109(457), pages 349-371, July.
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    More about this item


    search; temporary employment;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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