Sala, Hector; Silva, José I.; Toledo, Manuel E. - Institute for the Study of Labor (IZA) - 2008
We study whether segmented labor markets with flexibility at the margin (e.g., just affecting fixed-term employees) can … achieve similar volatility than fully deregulated labor markets. Flexibility at the margin produces a gap in separation costs … explain the similar volatility observed in many regulated OECD labor markets with flexibility at the margin vis-à-vis the …