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Taxation of temporary jobs good intentions with bad outcomes? Pierre Cahuc... [et al.]

Contributor(s): Cahuc, Pierre.
Material type: ArticleArticlePublisher: 2020Subject(s): TRABAJO TEMPORAL | IMPUESTOS | FRANCIA In: The Economic Journal vol. 130. nº 626, february 2020, p. 422-445Summary: This article analyses the consequences of the taxation of temporary jobs of short duration 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.
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This article analyses the consequences of the taxation of temporary jobs of short duration 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.

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