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Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?

By: Cahuc, Pierre. et al.
Material type: materialTypeLabelBookPublisher: The Economic Journal Description: 130(626), Feb, 2020: p.422-445. In: The Economic JournalSummary: This article analyses the consequences of the taxation of temporary jobs of short duration 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. – Reproduced
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Articles Articles Indian Institute of Public Administration
130(626), Feb, 2020: p.422-445 Available AR124565

This article analyses the consequences of the taxation of temporary jobs of short duration 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. – Reproduced

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