Showing 1 - 10 of 13
We measure the impact of employment protection reduction in an uncertain framework on firms' hires and performance, exploiting the Italian 2015 Jobs Act. Results indicate that firms (1) stabilize workforce mainly through contract transformations of low-tenure and low-human-capital incumbent...
Persistent link: https://www.econbiz.de/10014237538
Two decades of unsuccessful marginal labour market reforms provided the political support to reduce the flexibility gap between temporary and open-ended workers by means of a retrenchment of the employment protection benefitting the latter. To support employment levels during the crisis years,...
Persistent link: https://www.econbiz.de/10012859304
In the US almost 3 per cent of employees are absent from their job for reasons other than vacation, but are still technically employed. We argue that firms may find optimal to use temporary replacement workers to fill these vacant positions. We set up a matching model with directed search and...
Persistent link: https://www.econbiz.de/10014078014
A large body of empirical literature indicates that, contrary to predictions from economic theory, wages in the informal sector increase after any minimum wage hike. This phenomenon was so far explained as a byproduct of a signal conveyed by statutory minimum wages to wage setting in the...
Persistent link: https://www.econbiz.de/10013144389
The recent financial crises, alongside a dramatic rise in unemployment on both sides of the Atlantic, suggest that financial shocks do translate into the labor markets. In this paper we first document that financial recessions amplify labor market volatility and Okun's elasticity over the...
Persistent link: https://www.econbiz.de/10013099747
Flexible work arrangements are on the rise in many countries, ranging from Germany's mini-jobs to UK's zero-hours contracts. These contracts allow for quick labor demand adjustments and are also seen as a way to discourage undeclared work, and more than 10 years ago Italy introduced what was...
Persistent link: https://www.econbiz.de/10014240539
Dismissal disputes occur mostly in recessions and often lead to long and costly contract termination procedures. This paper investigates how dispute procedures may affect the job-matching process. First we present a simple accounting frame- work that corresponds with general dismissal...
Persistent link: https://www.econbiz.de/10013016345
The public sector hires disproportionately more educated workers. Using US microdata, we show that the education bias also holds within industries and in two thirds of 3-digit occupations. To rationalize this finding, we propose a model of private and public employment based on two features....
Persistent link: https://www.econbiz.de/10012843719
We propose a simple theory of under- and over-employment. Individuals of high type can perform both skilled and unskilled jobs, but only a fraction of low-type workers can perform skilled jobs. People have different non-pecuniary values over these jobs, akin to a Roy model. We calibrate two...
Persistent link: https://www.econbiz.de/10012841002
All OECD countries have either legally mandated severance pay or compensations imposed by industry-level bargaining in case of employer initiated job separations. According to the extensive literature on Employment Protection Legislation such transfers are either ineffective or highly...
Persistent link: https://www.econbiz.de/10013079741