Competition for Jobs in a Growing Economy and the Emergence of Dualism
We aim to explain the rising share of short-term employment in Europe using a matching model with growth. We find that a slowdown in growth of labour productivity leads to the emergence of temporary (short-term) jobs and then explains their increasing share in total employment. Lower growth rates also shift the "Beveridge curve" to the right and weaken the bargaining position of workers. These effects generate a relation between growth and unemployment, which can be negative when the adverse effect of growth on wage setting dominates its positive effect on labour demand. In addition, higher population growth increases the share of temporary jobs and unemployment. Finally, the often blamed firing costs are found to be neutral when there is no floor on wages.
(This abstract was borrowed from another version of this item.)
|Date of creation:||1997|
|Contact details of provider:|| Postal: 15 Boulevard Gabriel Peri 92245 Malakoff Cedex|
Phone: 01 41 17 60 81
Web page: http://www.crest.fr
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:97-15. 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: (Florian Sallaberry)
If references are entirely missing, you can add them using this form.