EXPLAINING THE SPREAD OF TEMPORARY JOBS AND ITS IMPACT ON LABOR TURNOVER
构建了一个模型,解释了企业选择永久或临时工作的原因,发现就业保护对总就业影响很小,但会导致临时工作大量替代永久工作,从而显著降低总产出。
This article provides a simple model that explains the choice between permanent and temporary jobs. This model, which incorporates important features of actual employment protection legislations neglected by the economic literature so far, reproduces the main stylized facts about entries into permanent and temporary jobs observed in Continental European countries. We find that job protection has very small effects on total employment but induces large substitution of temporary jobs for permanent jobs, which significantly reduces aggregate production.