Composition of Firms versus Composition of Jobs
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Universitat de València
info
ISSN: 1988-8767
Year of publication: 2006
Issue: 281
Type: Working paper
More publications in: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]
Abstract
The aim of this paper is to explore the qualitative aspects of the interaction between product and market regulations. For this purpose, we present a labor market matching model with two industries and two types of jobs, temporary and permanent, in which either composition of firms and composition of jobs is endogenously determined. Our main result is that the effects of labor market deregulations will depend on the type of equilibrium that arises in the economy. Therefore, the same labor market policy can yield opposite outcomes when applied to different countries.