The impact of short-term employment contracts on employment volatility and economic fluctuations

Matsue, Toyoki (2020): The impact of short-term employment contracts on employment volatility and economic fluctuations.

Abstract

This study investigates the effects of short-term employment contracts on employment fluctuations using a dynamic model with long-term and short-term employment contracts. Numerical experiments show that an increase in the short-term employment ratio amplifies the fluctuations in total employment—when a shock to the total factor productivity occurs—because of the variations in short-term employment being larger than those in long-term employment.

• Item Type: MPRA Paper
• Language: English
• Keywords: Employment fluctuations, Short-term employment, Labor contract, Employment duration, Labor market institutions
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts

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