Evaluating labor market reforms : a general equilibrium approach

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dc.contributor.author Alonso-Borrego, César
dc.contributor.author Fernández Villaverde, Jesús
dc.contributor.author Galdón Sánchez, José E.
dc.date.accessioned 2006-11-09T11:31:45Z
dc.date.available 2006-11-09T11:31:45Z
dc.date.issued 2004-04
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/316
dc.description.abstract Job security provisions are commonly invoked to explain the high and persistent European unemployment rates. This belief has led several countries to reform their labor markets and liberalize the use of fixed-term contracts. Despite how common such contracts have become after deregulation, there is a lack of quantitative analysis of their impact on the economy. To fill this gap, we build a general equilibrium model with heterogeneous agents and firing costs in the tradition of Hopenhayn and Rogerson (1983). We calibrate our model to Spanish data, choosing in part parameters estimated with firm-level longitudinal data. Spain is particularly interesting, since its labor regulations are among the most protective in the OECD, and both its unemployment and its share of fixed-term employment are the highest. We find that fixedterm contracts increase unemployment, reduce output, and raise productivity. The welfare effects are ambiguous.
dc.format.extent 751299 bytes
dc.format.mimetype application/pdf
dc.language.iso eng
dc.language.iso eng
dc.relation.ispartofseries UC3M Working Paper. Economics
dc.relation.ispartofseries 2004-07
dc.relation.hasversion http://hdl.handle.net/10016/4667
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Evaluating labor market reforms : a general equilibrium approach
dc.type workingPaper
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.identifier.repec we042307
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