Competition for jobs in a growing economy and the emergence of dualism

Etienne Wasmer

    Research output: Contribution to journalArticle

    Abstract

    The objective of the article is to explain the rising share of short-term employment in Europe. In a matching model, it is shown that a slowdown in the growth of labour productivity leads to the emergence of temporary (short-term) jobs and increases their share of total employment. Higher population growth also increases the share of temporary jobs. Finally, the much blamed firing costs are found to be neutral when there is no floor on wages. In addition, in periods of low growth, the rise in the share of short-term jobs weakens workers' bargaining position.

    Original languageEnglish (US)
    Pages (from-to)349-371
    Number of pages23
    JournalEconomic Journal
    Volume109
    Issue number457
    DOIs
    StatePublished - Jan 1 1999

    Fingerprint

    Dualism
    Matching model
    Firing costs
    Labour productivity
    Wages
    Population growth
    Workers

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Competition for jobs in a growing economy and the emergence of dualism. / Wasmer, Etienne.

    In: Economic Journal, Vol. 109, No. 457, 01.01.1999, p. 349-371.

    Research output: Contribution to journalArticle

    Wasmer, Etienne. / Competition for jobs in a growing economy and the emergence of dualism. In: Economic Journal. 1999 ; Vol. 109, No. 457. pp. 349-371.
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