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Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ?

Author

Listed:
  • Franck Malherbet

    (CREST and Ecole Polytechnique)

  • Helene Benghalem

    (CREST)

Abstract

This paper analyzes the consequences of the taxation of temporary jobs recently introduced in several European countries to induce fi rms 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

  • Franck Malherbet & Helene Benghalem, 2017. "Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ?," 2017 Meeting Papers 974, Society for Economic Dynamics.
  • Handle: RePEc:red:sed017:974
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    References listed on IDEAS

    as
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    1. Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?
      by maximorossi in NEP-LTV blog on 2016-11-23 21:35:51

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    Cited by:

    1. Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan F., 2019. "Dual Labour Markets Revisited," IZA Discussion Papers 12126, Institute of Labor Economics (IZA).

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    More about this item

    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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