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Young workers flows and short-term contracts

Tealdi, Cristina Young workers flows and short-term contracts. Working Paper # /2009 (Unpublished)

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The issue of fixed term contract in the labor market is not a problem of the past. In the last ten years the share of temporary contracts has been growing in many European countries. Moreover, the category of young workers seems to be the most affected. This paper develops a search model in which firms hire young and old workers either on a short-term or on a long-term contract. The firm decision is driven mainly by two key parameters: the length of the short-term contract and the firing cost associated with the long-term contract. The presence of full or asymmetric information in the economy affects the contract choice of the firm and, consequently, the steady-state distribution of unemployment across types. Simulation and estimation exercises are performed; the availability of data on the Italian labor market will contribute to the completion of the paper.

Item Type: Working Paper (Working Paper)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Research Area: Economics and Institutional Change
Depositing User: Ms T. Iannizzi
Date Deposited: 22 Sep 2011 13:32
Last Modified: 24 Jan 2014 14:26
URI: http://eprints.imtlucca.it/id/eprint/902

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