Abstract This study develops a search and matching model for labour markets with temporary and permanent contracts. It matches empirical patterns of higher matching rates and lower surplus for temporary workers and predicts an increase in separation taxes leads to a fall in the number of new permanent jobs, an increase in their wages, and stable separation rates because temporary workers shield permanent workers from adverse shocks. We find empirical support using a regional French policy experiment, the “Contrat de Transition Professionelle”, which increased separation taxes for recently hired permanent workers in firms with fewer than 1,000 workers.

Markus Gebauer

IZA Journal of Labor Policy

The IZA Journal of Labor Policy publishes scientific articles that are relevant for policy-making. This refers to papers addressing the impact of institutional settings and policy interventions on labor market outcomes, both from a theoretical as well as from an empirical point of view. In addition, the IZA Journal of Labor Policy publishes literature reviews and meta-analyses that synthesize existing research on policy relevant issues.

The IZA Journal of Labor Policy publishes scientific articles that are relevant to policy-making. These articles address the impact of institutional settings and policy interventions on labor market outcomes, from both theoretical and empirical perspectives. Additionally, the IZA Journal of Labor Policy publishes literature reviews and meta-analyses that synthesize existing research on policy-relevant issues.

IZA Journal of Labor Policy 发表与政策制定相关的科学文章。这些文章探讨制度环境和政策干预对劳动市场结果的影响，既包括理论分析，也包括实证研究。此外，IZA Journal of Labor Policy 还发表文献综述和元分析，综合现有关于政策相关问题的研究。

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Journal Info

Category	Quartile
INDUSTRIAL RELATIONS & LABOR	3