Job flow dynamics is segmented labor markets: the effects of a reduction in firing consts in Spain

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dc.contributor.author Osuna, Victoria
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2009-12-18T10:56:08Z
dc.date.available 2009-12-18T10:56:08Z
dc.date.issued 1999-09
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/6163
dc.description.abstract This paper proposes a model of job creation and destruction of the search and matching type. The model is able to replicate the magnitude and cyclical behavior of job creation, destruction and reallocation rates in a segmented labor market like the one in Spain. The motivation is the similarity in the cyclical behavior of US and Spanish job reallocation (JR) rates despite the differences in job security regulations. This behavior contrasts to what is observed in the rest of continental Europe, where JR is acyclical. The model, by introducing a segmented labor market, makes is plausible to obtain a countercyclical JR rate in a high firing cost economy. In addition, we quantify the effects of a 40 % reduction in the firing costs associated with permanent contracts. The main results are (i) negligible effects on permanent job destruction rates, (ii) significant effects on job creation and destruction (permanetltemporary) cyclical behavior, (iii) a 57 % increase in the job conversion rate from temporary into permanetjobs and a 12 % reduction in the temporary employment rate.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics
dc.relation.ispartofseries 99-59-23
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Reallocation
dc.subject.other Firing costs
dc.subject.other Bargaining
dc.subject.other Matching
dc.subject.other Search
dc.title Job flow dynamics is segmented labor markets: the effects of a reduction in firing consts in Spain
dc.type workingPaper
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
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