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https://hdl.handle.net/10419/53907
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Cao, Shutao | en |
dc.contributor.author | Shao, Enchuan | en |
dc.contributor.author | Silos, Pedro | en |
dc.date.accessioned | 2011-10-10 | - |
dc.date.accessioned | 2011-12-15T12:58:02Z | - |
dc.date.available | 2011-12-15T12:58:02Z | - |
dc.date.issued | 2011 | - |
dc.identifier.pi | doi:10.34989/swp-2011-21 | en |
dc.identifier.uri | http://hdl.handle.net/10419/53907 | - |
dc.description.abstract | This paper constructs a theory of the coexistence of fixed-term and permanent employment contracts in an environment with ex-ante identical workers and employers. Workers under fixed-term contracts can be dismissed at no cost while permanent employees enjoy labor protection. In a labor market characterized by search and matching frictions, firms find it optimal to discriminate by offering some workers a fixedterm contract while offering other workers a permanent contract. Match-specific quality between a worker and a firm determines the type of contract offered. We analytically characterize the firm's hiring and firing rules. Using matched employer-employee data from Canada, we estimate the model's parameters. Increasing the level of firing costs increases wage inequality and decreases the unemployment rate. The increase in inequality results from a larger fraction of temporary workers and not from an increase in the wage premium earned by permanent workers. | en |
dc.language.iso | eng | en |
dc.publisher | |aBank of Canada |cOttawa | en |
dc.relation.ispartofseries | |aBank of Canada Working Paper |x2011-21 | en |
dc.subject.jel | H29 | en |
dc.subject.jel | J23 | en |
dc.subject.jel | J38 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Labour markets | en |
dc.subject.keyword | Potential output | en |
dc.subject.keyword | Productivity | en |
dc.title | Fixed-term and permanent employment contracts: Theory and evidence | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 669551023 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
dc.identifier.repec | RePEc:bca:bocawp:11-21 | en |
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