Temporary employment: The trade-off between efficiency and equity

Elke Jahn, Regina T. Riphahn, Claus Schnabel 10 October 2012

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Over the last three decades, the use of flexible forms of employment such as fixed-term and temporary agency work contracts has increased substantially throughout much of Europe. This development has been driven by government efforts to ease restrictions on temporary employment, whereas the regulation of permanent contracts has been left essentially unaltered. The reforms of temporary employment have intended to increase overall employment by lowering dismissal and adjustment costs for flexible jobs and thereby providing firms with new opportunities.

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Topics:  Labour markets

Tags:  unemployment, temporary contracts, equity, efficiency

Assessing the recent labour market agreement in France

Gilles Saint-Paul 01 February 2008

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In my view, the recent agreement between employers and unions on labour market reforms is globally positive. While it is not a step in the direction of a fully flexible labour market (but this is not on the agenda anyway), it exploits existing margins of improvements in order to reduce non-wage labour costs to firms – in particular, the ones they face when deciding to get rid of a worker – while preserving the protection of the workers as they move between jobs. We are moving to a model of labour relations which is not perfect, but is a clear improvement over the present one.

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Topics:  Labour markets

Tags:  France, unemployment, labour market reforms, benefit system, turnover costs, temporary contracts