Discussion Paper Details
Please find the details for DP11628 in an easy to copy and paste format below:
Title: Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ?
Author(s): Hélène Benghalem, Pierre Cahuc, Olivier Charlot, Emeline Limon and Franck Malherbet
Publication Date: November 2016
Keyword(s): Employment protection legislation, taxation and Temporary jobs
Programme Area(s): Labour Economics
Abstract: This paper analyzes the consequences of the taxation of temporary jobs recently introduced in several European countries to induce firms to create more open-ended contracts and to increase the duration of jobs. The estimation of a job search and matching model on French data shows that the taxation of temporary jobs does not reach its objectives: it reduces the mean duration of jobs and decreases job creation, employment and welfare of unemployed workers. We find that a reform introducing an open-ended contract without layoff costs for separations occurring at short tenure would have opposite effects.
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Benghalem, H, Cahuc, P, Charlot, O, Limon, E and Malherbet, F. 2016. 'Taxation of Temporary Jobs: Good Intentions With Bad Outcomes ?'. London, Centre for Economic Policy Research. https://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11628