This paper constructs a theory of the coexistence of fixed-term and permanent employment contracts in an environment with ex ante identical workers and employers. Workers under fixed-term contracts can be dismissed at no cost while permanent employees enjoy labor protection. In a labor market...

This paper investigates the connection between the Swedish wage profile of net job creation and Autor, Levy, and Murnane's (2003) proposed substitutability between routine tasks and technology. We first show that between 1975 and 2005, Sweden exhibited a pattern of job polarization with...