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Job Protection, Housing Market Regulation and the Youth

Abstract : 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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Preprints, Working Papers, ...
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https://halshs.archives-ouvertes.fr/halshs-01376582
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Submitted on : Wednesday, October 5, 2016 - 11:39:53 AM
Last modification on : Thursday, November 4, 2021 - 11:58:07 AM
Long-term archiving on: : Friday, January 6, 2017 - 1:10:16 PM

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WP 2016 - Nr 36.pdf
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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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