Arbeitspapier

A Nutshell Model of Labor Demand with Permanent and Short-Term Contracts

The paper presents a two-period "nutshell" model that explains the composition of labour demand when the labour market is dualistic and workers may be hired via permanent (P) or temporary (T) contracts. The model does not explain the level of labor demand, nor the wage of permanent workers, assumed to be exogenous. This is the main difference with the more sophisticated structural model of Bentolila et al. (2012) where employment and wages are jointly determined. The nuthsell model delivers, however, a number of easily testable hypotheses – very relevant for policy – that the structural model does not handle.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 12135

Classification
Wirtschaft
Labor Turnover; Vacancies; Layoffs
Subject
dual labor markets
labor demand
permanent and temporary jobs

Event
Geistige Schöpfung
(who)
Contini, Bruno
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2019

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Contini, Bruno
  • Institute of Labor Economics (IZA)

Time of origin

  • 2019

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