Evaluating Labor Market Reforms : A General Equilibrium Approach

Arbeitspapier

Job security provisions are commonly invoked to explain the high and persistent European unemployment rates. This belief has led several countries to reform their labor markets and liberalize the use of fixed-term contracts. Despite how common such contracts have become after deregulation, there is a lack of quantitative analysis of their impact on the economy. To fill this gap, we build a general equilibrium model with heterogeneous agents and firing costs in the tradition of Hopenhayn and Rogerson (1993). We calibrate our model to Spanish data, choosing in part parameters estimated with firm-level longitudinal data. Spain is particularly interesting, since its labor regulations are among the most protective in the OECD, and both its unemployment and its share of fixed-term employment are the highest. We find that fixedterm contracts increase unemployment, reduce output, and raise productivity. The welfare effects are ambiguous.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 1129

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Wages, Compensation, and Labor Costs: General ; Computable General Equilibrium Models ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
• Thema: fixed-term contracts ; firing costs ; general equilibrium ; heterogeneous agents ; Arbeitsmarktflexibilisierung ; Befristeter Arbeitsvertrag ; Kündigung ; Kosten ; Wirtschaftspolitische Wirkungsanalyse ; Allgemeines Gleichgewicht ; Wohlfahrtseffekt ; Theorie ; Spanien

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Galdon-Sanchez, José Enrique ; Fernández-Villaverde, Jesús ; Alonso-Borrego, César
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/20364
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ