Employment Protection Reforms, Employment and theIncidence of Temporary Jobs in Europe : 1995–2001

Using European Community Household Panel data for nine countries for 1996-2001, Iinvestigate the impact of reforms of employment protection systems on employment and ontemporary jobs for wage and salary workers. Individual fixed effects models are estimated,with the inclusion of country-specific trends in the dependent variable, addressing thepossibly changing labor force composition and the possible endogeneity of the reforms. Abasic finding that is robust to all specifications and to the disaggregation of the sample bycountry is that policies making it easier to create temporary jobs raise the likelihood thatwage and salary workers will be in temporary jobs...