Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/149211
Authors: 
Cahuc, Pierre
Charlot, Olivier
Malherbet, Franck
Benghalem, Helène
Limon, Emeline
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10352
Abstract: 
This paper analyzes the consequences of the taxation of temporary jobs recently introduced in several European countries to induce firms 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 layout costs for separations occurring at short tenure would have opposite effects.
Subjects: 
temporary jobs
employment protection legislation
taxation
JEL: 
J63
J64
J68
Document Type: 
Working Paper

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