unemployment, this paper theoretically investigates the importance of labor market duality on labor market volatilities. The new … insight is that duality leads to a non-linear reaction of unemployment volatility for both supply and demand shocks. A … subsequent empirical panel data analysis confirms the model predictions. Uncovering the non-linearity in unemployment volatility …

two preceding decades - or based on dualisation or insider-outsider theory. The reform trajectories are characterised by … deregulation of dismissal protection for open-ended contracts. …