%0 Report %A Cahuc, Pierre %A Charlot, Olivier %A Malherbet, Franck %A Benghalem, Helène %A Limon, Emeline %T Taxation of Temporary Jobs: Good Intentions with Bad Outcomes? %D 2016 %8 2016 Nov %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 10352 %U https://www.iza.org/index.php/publications/dp10352 %X 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. %K taxation %K employment protection legislation %K temporary jobs