Cahuc, Pierre. et al
Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?
- The Economic Journal
- 130(626), Feb, 2020: p.422-445
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