Dolado, Juan J.; Ortigueira, Salvador; Stucchi, Rodolfo - In: SERIEs : Journal of the Spanish Economic Association 7 (2016) 4, pp. 421-459
This paper analyzes how changes in the firing-costs gap between permanent and temporary workers affect firms’ TFP in a dual labour market. We argue that, under plausible conditions, firms’ temp-to-perm conversion rates go down when this gap increases. Temporary workers respond to lower...
