A long-standing economic tradition maintains that labour supply reacts to market tightness; its sensitivity to job quality has received less attention. If firms hire workers with both temporary and open-end contracts, does participation increase when more permanent jobs are available? We...

A long-standing economic tradition maintains that labour supply reacts to market tightness; its sensitivity to job quality has received less attention. If firms hire workers with both temporary and open-ended contracts, does participation increase when more permanent jobs are available? We...

Fixed-term contracts have been used in many European countries to reduce firms' firing costs. In this paper we evaluate the size of these costs by measuring firms' willingness to trade fixed-term for open-ended contracts in exchange for a cut in the labor cost of permanent jobs. Our results are...