This paper analyzes the dynamics of temporary jobs in a labor market characterized by worker heterogeneity and employment protection. We argue that segmentation in the labor market arises endogenously from the heterogeneity of workers. In this sense, we show the existence of two opposite...

This paper analyzes thes dynamics of temporary jobs in a labor market characterized by worker's skill heterogeneity and employment protection. We construct a theoretical labor market that incorporates skill differences across workers in order to identify under which conditions temporary...

We construct a theoretical labor market that incorporates skill differences across workers to identify under which conditions temporary contracts are a way to access to permanency. Firing costs and unemployment benefits increase the threshold productivity above which workers access to permanency.