Juan Dolado, Etienne Lalé, Nawid Siassi, 30 January 2016

The dual labour markets of Southern Europe and France create a ‘revolving door’ through which many workers – especially youths – rotate between dead-end jobs and unemployment. The problem lies in the difference between the costs of firing workers on permanent versus temporary contracts. This column proposes a framework for evaluating what the optimal single contract should look like taking account of transitional issues and political economy constraints.

CEPR Policy Research