This paper focuses on friction in the matching process arising in a dual labour market where good and bad jobs coexist. In particular, we present an empirical investigation of the role of strong preferences for permanent contracts to explain job mismatch and longer unemployment duration. To...

The aim of the paper is to produce both a theoretical and empirical analysis on the existence and nature of a causal link between the set of labour market institutions (the industrial relations systems) and national employment performance.In Section 2, the existing literature is briefly...