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Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ?

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Listed:
  • Benghalem, Hélène
  • Cahuc, Pierre
  • Charlot, Olivier
  • Limon, Emeline
  • Malherbet, Franck

Abstract

This paper analyzes the consequences of the taxation of temporary jobs recently introduced in several European countries to induce firms to create more open-ended contracts and to increase the duration of jobs. The estimation of a job search and matching model on French data shows that the taxation of temporary jobs does not reach its objectives: it reduces the mean duration of jobs and decreases job creation, employment and welfare of unemployed workers. We find that a reform introducing an open-ended contract without layoff costs for separations occurring at short tenure would have opposite effects.

Suggested Citation

  • Benghalem, Hélène & Cahuc, Pierre & Charlot, Olivier & Limon, Emeline & Malherbet, Franck, 2016. "Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ?," CEPR Discussion Papers 11628, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11628
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?
      by maximorossi in NEP-LTV blog on 2016-11-23 21:35:51

    Citations

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    Cited by:

    1. Cahuc, Pierre & Carry, Pauline & Malherbet, Franck & Martins, Pedro, 2022. "Employment Effects of Restricting Fixed-Term Contracts: Theory and Evidence," CEPR Discussion Papers 16875, C.E.P.R. Discussion Papers.
    2. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2019. "Dual Labour Markets Revisited," CESifo Working Paper Series 7479, CESifo.
    3. Zheng, Kun, 2019. "Essays on duration analysis and labour economics," Other publications TiSEM 6467229e-a10b-4d8d-acaf-c, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    Employment protection legislation; taxation; Temporary jobs;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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