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Workers and Firms Sorting into Temporary Jobs

Bibliographic Data

ID9704334
AuthorsFabio Berton (0000-0002-2894-1297, University of Eastern Piedmont and LABORatorio R. Revelli), Pietro Garibaldi (0000-0002-4211-7915, University of Turin and Collegio Carlo Alberto)
Year2012
Volume122
Issue562
PagesF125-F154
Publication date2012-08-01
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2012.2533.x
OpenAlexW2133802746
LanguageEN
Citations received13
References cited35

The liberalisation of temporary contracts has led to a sizeable share of jobs covered by temporary contracts. This article proposes a matching model of unemployment in which temporary (fixed‐term) and permanent (open‐ended) jobs coexist in a long‐run equilibrium. From the labour demand standpoint, the choice of the type of contract leads to a trade‐off between an ex‐ante speed of hiring and an ex‐post flexible dismissal rate. Empirically, we test with Italian longitudinal data whether non‐employment spells that lead to a temporary job are shorter on average. The empirical evidence strongly supports our theoretical prediction

Dismissal · Economics · Ex-ante · Labour economics · Macroeconomics · Matching (statistics · Restrictiveness · Sorting · Unemployment · Unfair dismissal · Firm Innovation and Growth · Italy: Economic History and Contemporary Issues · Labor market dynamics and wage inequality

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Citations per year0.93
Citation span2012 - 2025 (14)
Highly citedNo

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