In a setting that focuses on efficient dynamic hours-workers substitution we show that contingent worksharing contributes to workers retention during bad business spells and to sustained hiring during good spells. As a consequence, average employment increases on both accounts. We also show that worksharing interacts with firing costs in affecting workforce decisions and determines the sign of the employment impact from an increase in firing restrictions.
|Date of creation:||Jul 2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro|
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