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Pré-publication, Document de travail Année : 2016

Job Protection, Housing Market Regulation and the Youth

Résumé

Young Europeans experience high unemployment rates, job instability and late emancipation. Meanwhile they do not support reforms weakening protection on long-term contracts. In this paper, we suggest a possible rationale for such reform distaste. When the rental market is very regulated, landlords screen applicants with regard to their ability to pay the rent. Protecting regular jobs offers a second-best technology to sort workers, thereby increasing the rental market size. We provide a model where non-employed workers demand protected jobs despite unemployment and the share of short-term jobs increase, whereas rents, wages and the individual risk of dismissal are unaffected.
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Dates et versions

halshs-01376582, version 1 (05-10-2016)

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  • HAL Id : halshs-01376582 , version 1

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Antoine Bonleu, Bruno Decreuse, Tanguy van Ypersele. Job Protection, Housing Market Regulation and the Youth. 2016. ⟨halshs-01376582⟩
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Dernière date de mise à jour le 06/04/2024
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