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| Author: | Blanchard, O. Landier, A. |
| Title: | The perverse effects of partial labour market reform: fixed-term contracts in France |
| Journal: | Economic Journal
2002 : JUN, VOL. 112:480, p. F214-F244 |
| Index terms: | Labour markets Employment policy Contracts France |
| Language: | eng |
| Abstract: | The authors argue that the effects of a partial reform of employment protection by allowing firms to hire workers on fixed-term contracts may be perverse. The main effect mey be high turnover in entry-level jobs, leading to higher, not lower, unemployment. Even if unemployment falls, workers may be worse off, going through many spells of unemployment and entry-level jobs, before obtaining a regular job. Considering French data for young workers since the early 1980s, the authors conclude that the reforms have substantially increased turnover, without a substantial reduction in unemployment duration. |
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