The Shortcomings of a Partial Release of Employment Protection Laws; The Case of the 2005 French Reform

This paper proposes an ex ante evaluation of the effects of new labor contracts such as the "Contrat Nouvelle Embauche" (CNE) introduced in France in 2005. The lessons we draw are of sufficiently general interest to be applicable to other countries or reforms of employment protection laws. Using a model that captures the characteristics of the French labor market, we simulate the effects of this reform on unemployment, employment, and welfare. We estimate that the CNE will lead to the creation of 70,000 additional jobs in the long run, but at the cost of a slight deterioration in welfare.

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Year of publication:	2006-12-01
Authors:	Cahuc, Pierre ; Carcillo, Stéphane
Institutions:	International Monetary Fund (IMF)
Subject:	Labor markets \| Social safety nets \| Unemployment \| Economic models \| jobs \| employment \| job creation \| labor market \| labor force \| unemployment rate \| unemployed \| job destruction \| labor force participation \| labor contracts \| unemployed individuals \| labor participation \| employment rate \| labor force participation rate \| employment protection \| labor participation rate \| labor contract \| job search \| unemployed individual \| duration of unemployment \| unemployment spells \| labor survey \| labour \| creating jobs \| total employment \| temporary work \| average duration of employment \| labor flows \| unemployed job seekers \| new jobs \| unemployment rates \| effect on employment \| employment protection legislation \| job search process \| labor supply \| job seekers \| labor union \| labor law \| employment contract \| labor laws \| wage employment \| unemployment insurance \| temporary jobs \| unemployed workers \| average duration of unemployment \| labor demand \| subsidized employment \| labor market reform \| minimum wage employment \| job opportunities \| short-term employment \| beveridge curve \| effects on employment \| less job security \| labor market tightness \| labor market conditions \| labor turnover \| rate of unemployment \| long-term unemployment \| employment policy \| labor market rigidity \| overall employment \| job prospects \| job turnover \| labor market performance \| job insecurity \| search unemployment \| job offers \| agricultural jobs \| net job creation \| national unemployment \| equilibrium unemployment \| unemployment spell \| employment increases \| job stability \| unemployment compensation \| job security \| labor force participants \| labor market participation \| low-wage employment \| dismissed worker \| labour demand \| growth of employment \| unemployment benefit \| job offer

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 06/301 4 pages long
Source:	RePEc - Research Papers in Economics

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