@TechReport{iza:izadps:dp10352, author={Cahuc, Pierre and Charlot, Olivier and Malherbet, Franck and Benghalem, Helène and Limon, Emeline}, title={Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?}, year={2016}, month={Nov}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={10352}, url={https://www.iza.org/index.php/publications/dp10352}, abstract={This paper analyzes the consequences of the taxation of temporary jobs recently introduced in several European countries to induce firms to create more open-ended contracts and to increase the duration of jobs. The estimation of a job search and matching model on French data shows that the taxation of temporary jobs does not reach its objectives: it reduces the mean duration of jobs and decreases job creation, employment and welfare of unemployed workers. We find that a reform introducing an open-ended contract without layout costs for separations occurring at short tenure would have opposite effects.}, keywords={taxation;employment protection legislation;temporary jobs}, }