Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58434
Authors: 
Centeno, Mario
Novo, Alvaro A.
Year of Publication: 
2011
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6239
Abstract: 
Portuguese firms engage in intense reallocation, most employers simultaneously hire and separate from workers, resulting in high excess worker turnover flows. These flows are constrained by the employment protection gap between open-ended and fixed-term contracts. We explore a reform that increased the employment protection of open-ended contracts and generated a quasi-experiment. The causal evidence points to an increase in the share and in the excess turnover of fixed-term contracts in treated firms. The excess turnover of open-ended contracts remained unchanged. This result is consistent with a high degree of substitution between open-ended and fixed-term contracts. At the firm level, we also show that excess turnover is quite heterogeneous and quantify its association with firm, match, and worker characteristics.
Subjects: 
excess worker turnover
two-tier systems
quasi-experiment
fixed-term contracts
JEL: 
J21
J23
J63
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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