Berton, Fabio; Garibladi, Pietro - Collegio Carlo Alberto, Università degli Studi di Torino - 2006
The liberalization of fixed term contracts in Europe has led to a two tier regime, with a growing share of jobs covered … by temporary contracts. The paper proposes a matching model with direct search in which temporary and permanent jobs … coexist in a long run equilibrium. When temporary contracts are allowed, firms are willing to open permanent jobs in as much …