Pérez, Jose Ignacio García; Osuna, Victoria - Departamento de Economía, Universidad Pablo de Olavide - 2011
This paper quantifies the effects of introducing a single open-ended contract for new hires, with increasing severance … driving force behind firm behaviour is the large gap in severance payments between temporary and permanent contracts (8 vs. 45 … effects of introducing this new design in severance payments. Our results show that this contract decreases unemployment (by …