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Bargaining and Temporary Employment

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  • Dimitri Paolini

Abstract

This article studies the behavior of the …rm when it is searching to …ll a vacancy. The principal hypothesis is that the …rm can o¤er two kinds of contracts to the workers, short-term or long-term contracts. The short-term contract is like a probationary stage in which the …rm can learn the worker’s type. After this stage the …rm can propose a long-term contract to the worker, or it can decide to …nd another worker. We suppose that the …rm and the worker bargain over the wage of both types of contract, and that the worker’s bargaining power is di¤erent according to the type of contract. We utilize this framework to study the …rms’ optimal policy choice and its welfare implications.

Suggested Citation

  • Dimitri Paolini, 2001. "Bargaining and Temporary Employment," CREPP Working Papers 0107, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
    • Handle: RePEc:rpp:wpaper:0107
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    File URL: http://www2.ulg.ac.be/crepp/papers/crepp-wp200107.pdf
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    References listed on IDEAS

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    1. Maia Güell & Barbara Petrongolo, 2000. "Workers Transitions from Temporary to Permanent Employment: the Spanish Case," CEP Discussion Papers dp0438, Centre for Economic Performance, LSE.
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    Cited by:

    1. Edoardo Di Porto & Leandro Elia & Cristina Tealdi, 2017. "Informal work in a flexible labour market," Oxford Economic Papers, Oxford University Press, vol. 69(1), pages 143-164.

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