Speaker: Andrea Bassanini , OECD, France
Title: Escaping Social Pressure: Fixed-Term Contracts in Multi-Establishment Firms
Fixed-term contracts account for a very large and increasing share of hiring in many OECD countries. There exists a vast literature suggesting that whether firms choose to hire workers on temporary rather than permanent contracts depends on the difference among legislation-induced adjustment costs associated with either type of contracts. This paper investigates the role of social pressure against dismissals of employees on permanent contracts as an alternative, legislation-independent determinant of the choice of contract at hiring.