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Moving towards a single contract ? Pros, cons, and mixed feelings

Author

Listed:
  • Nicolas Lepage-Saucier

    (Sciences Po - Sciences Po)

  • Juliette Schleich
  • Etienne Wasmer

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract
Although the single employment contract is not popular among both representatives of workers and company leaders, the proposal for a single labor contract, created with the goal of reducing dualism, has paradoxically remained at the forefront of debates on the need for reform of the labor market. At first glance, the single employment contract seems to be an attractive response to the issue of dualism. However, upon looking more closely, it appears that a single contract would not resolve problems linked to precariousness and the consequences of employment protection. Most of the time, alternative policies could be more efficient. Moreover, while there are costs to dualism, these are not as obvious and well established as the ones triggered by employment protection itself. Finally, suppressing temporary contracts would lead, at a constant level of employment protection, to important employment losses, given that not all temporary jobs would become permanent jobs. A drastic reform of employment protection would be needed. Such a reform does not need to be linked to the creation of a new employment contract: counterparts in terms of unemployment insurance or firm­ sponsored training are possible.

Suggested Citation

  • Nicolas Lepage-Saucier & Juliette Schleich & Etienne Wasmer, 2013. "Moving towards a single contract ? Pros, cons, and mixed feelings," SciencePo Working papers Main hal-03460872, HAL.
    • Handle: RePEc:hal:spmain:hal-03460872
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460872
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    Citations

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    Cited by:

    1. Guillaud, Elvire & Marx, Paul, 2013. "Preferences for Employment Protection and the Insider-Outsider Divide," IZA Discussion Papers 7569, Institute of Labor Economics (IZA).
    2. Berson, Clémence & Ferrari, Nicolas, 2015. "Financial incentives and labour market duality," Labour Economics, Elsevier, vol. 37(C), pages 77-92.
    3. Elsa Fornero, 2013. "Reforming labor markets: reflections of an economist who (unexpectedly) became the Italian Minister of Labor," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-18, December.
    4. Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan F., 2019. "Dual Labour Markets Revisited," IZA Discussion Papers 12126, Institute of Labor Economics (IZA).
    5. José Ignacio García-Pérez & Josep Mestres Domènech, 2019. "The Impact of the 2012 Spanish Labour Market Reform on Unemployment Inflows and Outflows: a Regression Discontinuity Analysis using Duration Models," Hacienda Pública Española / Review of Public Economics, IEF, vol. 231(4), pages 157-200, December.
    6. Jan J. Rutkowski & Claudia Oriolo & Iva Tomic & Sanja Madzarevic-Sujster, 2016. "Addressing Labor Market Duality in Croatia," World Bank Publications - Reports 33399, The World Bank Group.
    7. J. Ignacio García Pérez, 2015. "Should severance pay be consistent for all workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 174-174, August.
    8. repec:ilo:ilowps:481497 is not listed on IDEAS
    9. Orbeta, Aniceto Jr. C. & Lanzona, Leonardo & Paqueo, Vicente B., 2016. "The Impact of Legal Minimum Wages on Employment, Income, and Poverty Incidence in the Philippines," Discussion Papers DP 2016-54, Philippine Institute for Development Studies.
    10. Le Barbanchon, Thomas. & Malherbet, Franck., 2013. "An anatomy of the French labour market : country case studies on labour market segmentation," ILO Working Papers 994814973402676, International Labour Organization.

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