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Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?

Author

Listed:
  • Cahuc, Pierre

    (Sciences Po, Paris)

  • Charlot, Olivier

    (University of Cergy-Pontoise)

  • Malherbet, Franck

    (Paris Graduate School of Economics, ENSAE)

  • Benghalem, Helène

    (University of Lausanne)

  • Limon, Emeline

    (University of Cergy-Pontoise)

Abstract
This paper analyzes the consequences of the taxation of temporary jobs recently introduced in several European countries to induce firms to create more open-ended contracts and to increase the duration of jobs. The estimation of a job search and matching model on French data shows that the taxation of temporary jobs does not reach its objectives: it reduces the mean duration of jobs and decreases job creation, employment and welfare of unemployed workers. We find that a reform introducing an open-ended contract without layout costs for separations occurring at short tenure would have opposite effects.

Suggested Citation

  • Cahuc, Pierre & Charlot, Olivier & Malherbet, Franck & Benghalem, Helène & Limon, Emeline, 2016. "Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?," IZA Discussion Papers 10352, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10352
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    File URL: https://docs.iza.org/dp10352.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?
      by maximorossi in NEP-LTV blog on 2016-11-23 21:35:51

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pierre Cahuc & Pauline Carry & Franck Malherbet & Pedro S Martins, 2022. "Employment Effects of Restricting Fixed-Term Contracts: Theory and Evidence," Working Papers hal-03881622, HAL.
    2. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2019. "Dual Labour Markets Revisited," CESifo Working Paper Series 7479, CESifo.
    3. Bottasso, Anna & Bratti, Massimiliano & Cardullo, Gabriele & Conti, Maurizio & Sulis, Giovanni, 2023. "Labor Market Regulation and Firm Adjustments in Skill Demand," IZA Discussion Papers 16262, Institute of Labor Economics (IZA).
    4. Kabátek, Jan & Liang, Ying & Zheng, Kun, 2023. "Are shorter cumulative temporary contracts worse stepping stones? Evidence from a quasi-natural experiment," Labour Economics, Elsevier, vol. 84(C).
    5. Zheng, Kun, 2019. "Essays on duration analysis and labour economics," Other publications TiSEM 6467229e-a10b-4d8d-acaf-c, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    taxation; employment protection legislation; temporary jobs;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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