Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?. Issue 626 (22nd November 2019)

• Record Type: Journal Article
• Authors: Cahuc, Pierre; Charlot, Olivier; Malherbet, Franck; Benghalem, Helène; Limon, Emeline
• Is Part Of: Economic journal. Volume 130:Issue 626(2020)
• Page Start: 422
• Page End: 445
• Publication Date: 2019-11-22
• Subjects: Economics -- Periodicals; Économie politique -- Périodiques; 330.05
• DOI: 10.1093/ej/uez062
• Languages: English
• ISSNs: 0013-0133

Abstract

Abstract: 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.