Fragmented Stability: Recalls and Fixed-Term Contracts in the French Labour Market with Olivier Charlot and Franck Malherbet
See the working paper: IZA, Chaire SPP
Abstract: This study investigates in a European perspective the phenomenon of recalls, in which previously laid off or furloughed employees are rehired by the same employer. It specifically examines the French labour market, notable for its pronounced degree of contractual dualism. A novel theoretical model is proposed, illustrating that recalls linked to fixed-term contracts contribute to employment fragmentation. Then, drawing on extensive linked employer-employee data from France spanning 2012 to 2019, we offer fresh empirical insights into recall practices. Our findings reveal a substantial recall rate of 44%, primarily involving fixed-term contracts of short duration, highlighting the strong link between recalls and contractual dualism. Contrary to expectations, recalls are prevalent even in sectors with stringent fixed-term contract regulations, suggesting potential lapses in enforcement. Our results suggest that a significant proportion of recalls could breach the legal requirements governing the use of fixed-term contracts. At a more granular level, over a quarter of recalled workers are rehired more than five times a year, with women and older employees disproportionately affected—further intensifying labour market segmentation. Firm-level analysis reveals a positive correlation between recalls and both firm size and productivity, while primarily attributing recall practices to fixed firm characteristics. This is observed both in the share of entries into recalled employment and in the duration of contracts upon recall. Recalls may meet firms' structural needs, however, insufficient incentives to stabilise employment and weak regulatory enforcement contribute to increased employment fragmentation and labour market segmentation. In sum, the joint use of recalls and fixed-term contracts leads to a particular labour market dynamics that we term as fragmented stability.
Unpacking the Small Effects of Subsidized Employment: the Role of Gender and Parenthood with Sarah Gharbi and Valentina Melentyeva
See the slides
Abstract: Subsidized employment has been widely used to tackle unemployment. Nevertheless, our understanding of the gender-specific effects of these policies remains limited. In this study, we assess the impact of a subsidized employment program in France allowing for heterogeneous effects across gender. We apply a dynamic difference-in-differences approach where older non-participating cohorts serve as a control group. Starting with the average effects, our findings reveal robust positive effects on annual earnings, working hours, and job conditions following program completion. However, the effect on the employment probability — the primary objective of these policies — is close to 0 and only marginally significant. When considering gender heterogeneity, our analysis indicates significant and positive effects on all outcomes for men. For women, the program fails to enhance the likelihood of employment. As parenthood is a major factor in gender inequality within the labour market, we investigate the influence of childbirth. Our analysis shows that the lack of impact on employment probability is due to smaller effects for fathers and especially mothers, who do not experience improved job prospects. Childless young men see their situation significantly improved. Women giving birth during the program turn out to be worse off at the end of the program.
Early-stage Career in a Dual Labour Market and Homeownership
Draft available upon request
Abstract: In France and many European countries, there are rising concerns about the growth of temporary employment. Temporary work represents 16.4% of total employment in France in 2019 (OECD, 2020) and the number of hires on fixed-term contracts of less than a month between 2000 and 2019 rose about 178%. This paper sheds light on the unequal access to the real estate market due to this growing labour market insecurity. From French administrative data on a representative sample of people born between 1975 and 1997, the estimation of a duration model provides evidence that having for the first time an open-ended contract has a stronger effect than having a temporary contract on the probability of becoming a homeowner. I provide evidence that this differentiated access is persistent over time.
Hiring Effects of the Disability Employment Quota: A Study of Quota Coverage Expansion
No draft available yet
In French
Stabilité fragmentée : la récurrence de la réembauche et des contrats à durée déterminée en France, avec Olivier Charlot et Franck Malherbet, Institut des politiques publiques, Note n°113 (Mars 2025)
Media coverage: Alternatives Économiques, Challenges, Le Monde, l'Humanité
L'emploi des personnes handicapées : Quel impact sur la performance des entreprises?, avec Catherine Bruneau, Document de travail France Stratégie (2020)
Résumé: Malgré les diverses aides financières versées aux entreprises, l’insertion sur le marché du travail des personnes handicapées reste difficile : leur taux de chômage est près de deux fois plus élevé que la moyenne en France. En dépit de l’obligation d'emploi des travailleurs handicapés (OETH), seulement 19 % des entreprises assujetties ont une proportion de travailleurs handicapés supérieure ou égale au taux légal de 6 % de leur effectif. Les efforts consentis par les entreprises ont-ils un impact sur leurs performances économiques ? Selon l’analyse menée sur un panel d’entreprises entre 2012 et 2016, l’emploi des personnes handicapées ne pèse pas sur les performances économiques et financières des entreprises. En outre, le niveau de performances des entreprises ne joue pas sur leur modalité de réponse à l’OETH (emploi direct ou indirect), dès lors que l’on tient compte de la taille, de la localisation et du secteur d’activité.