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| Author: | Goux, D. Main-in, E. Pauchet, M. |
| Title: | Fixed-term contracts and the dynamics of labour demand |
| Journal: | European Economic Review
2001 : MAR, VOL. 45:3, p. 533-552 |
| Index terms: | CONTRACTS ADJUSTMENT COSTS LABOUR DEMAND |
| Language: | eng |
| Abstract: | The authors estimate a model of labor demand that accounts for dynamics arising from the relative costs of hiring and firing workers on either indefinite-term contract (ITC) or fixed-term contract (FTC). The authors use a panel of 1000 French firms, for which the authors can measure the number of entries and exits for each type of contract between 1988 and 1992. The authors' estimates suggest that (1) it is much more costly to lay off workers under ITC than to hire them; (2) it is much less costly to adjust the number of FTC than to adjust the number of ITC; (3) the asymmetry between hiring and lay off costs is more important for non-production than for production workers. |
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