Flexibility at the margin and labor market volatility in OECD countries

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dc.contributor.author Sala, Hector
dc.contributor.author Silva, José I.
dc.contributor.author Toledo, Manuel E.
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2007-08-20T10:37:48Z
dc.date.available 2007-08-20T10:37:48Z
dc.date.issued 2007-07
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/928
dc.description.abstract We argue that segmented labor markets with flexibility at the margin (e.g., just affecting fixed-term employees) may achieve similar volatility than fully deregulated labor markets. Flexibility at the margin produces a gap in separation costs among matched workers that cause fixed-term employment to be the main workforce adjustment device. Moreover, in the presence of limitations in the duration and number of renewals of fixed-term contracts, firms respond by fostering labor turnover which further raises the volatility of the labor market. We present a matching model with temporary and permanent jobs where (i) the gap in firing costs and (ii) restrictions in the use of fixedterm contracts play the central role to explain the similar volatility observed in many regulated labor markets with flexibility at the margin vis-à-vis the fully deregulated ones.
dc.format.extent 302457 bytes
dc.format.mimetype application/pdf
dc.language.iso eng
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics
dc.relation.ispartofseries 07-32
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Flexibility at the margin
dc.subject.other Volatility
dc.subject.other Separation costs
dc.subject.other Matching model
dc.title Flexibility at the margin and labor market volatility in OECD countries
dc.type workingPaper
dc.subject.jel J23
dc.subject.jel J41
dc.subject.jel J63
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.identifier.repec we075832
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