Research and publications

Obelix of Vitruve by Albert Uderzo inspired from the Vitruvian Man (1490)

Working papers / Work in Progress

The Detrimental Effect of Job Protection on Employment: Evidence from France

with Pierre Cahuc and Julien Prat (Reject and Resubmit to the Journal of Political Economy)

Abstract: According to French law, employers have to pay at least six months salary to employees whose seniority exceeds two years in case of unfair dismissal. We show, relying on data, that this regulation entails a hike in severance payments at two-year seniority which induces a significant rise in the job separation rate before the two-year threshold and a drop just after. The layoff costs and its procedural component are evaluated thanks to the estimation of a search and matching model which reproduces the shape of the job separation rate. We find that total layoff costs increase with seniority and are about four times higher than the expected severance payments at two years of seniority. Counterfactual exercises show that the fragility of low-seniority jobs implies that layoff costs reduce the average job duration and increase unemployment for a wide set of empirically relevant parameters.

| Current version | Working paper: CEPR, IZA |

| Media Coverage: Vox-EU |


Title Employment Effect of Restricting Fixed-Term Contracts: Theory and Evidence

with Pierre Cahuc, Pauline Carry and Pedro S. Martins (submitted)

Abstract: This paper examines a labor law reform implemented in Portugal in 2009 which restricted the use of fixed-term contracts to reduce labor market segmentation. The reform targeted establishments created by large firms above a specific size threshold, covering about 15% of total employment. Drawing on linked employer-employee longitudinal data and regression discontinuity methods, we find that, while the reform was successful in reducing the number of fixed-term jobs, it did not increase the number of permanent contracts and decreased employment in large firms. However, we find evidence of positive spillovers to small firms that may bias reduced form estimates. To evaluate general equilibrium effects, we build and estimate a directed search and matching model with endogenous number of establishments and jobs. We find spillover effects that induce small biases on reduced form estimates but that significantly change the evaluation of the overall impact of the reform because they diffuse to the whole economy. We estimate that the reform slightly reduced aggregate employment and had negative effects on the welfare of employees and unemployed workers.

| Current version | Working paper: CEPR, IZA |

| Media Coverage: Vox-EU Atlantico |


Minimum Wage Spillovers in an Equilibrium Search and Matching Model

joint work with Olivier l'Haridon and Denys Médée-Welter

Abstract: TBA

| In preparation |


Job Mobility and Creative Destruction: Flexicurity in the Land of Schumpeter

joint work with Francis Kramarz, Hèlène Turon and Josef Zweimüller

Abstract: TBA

| In preparation |


Temporay Layoffs in a Dual Labor Market

joint work with Olivier Charlot and Eloise Menestrier

Abstract: TBA

| In preparation |

Published articles

  • "Taxation of Temporary Jobs: Good Intentions with Bad Outcomes?, The Economic Journal (2020), with H. Benghalem, P. Cahuc, O. Charlot and E. Limon. [doi]

  • "L'effet des coûts de licenciement sur la durée des emplois des travailleurs peu qualifiés en France", Revue Française d'Economie (2019), avec P. Cahuc et J. Prat. [doi]

  • "Explaining the Spread of Temporary Jobs and Its Impact on Labor Turnover", International Economic Review (2016), with P. Cahuc et O. Charlot. [doi]

  • "Unemployment Compensation and the Allocation of Labor in Developing Countries", Journal of Public Economic Theory (2016), with O. Charlot and M. Ulus. [doi]

  • "Améliorer l'efficacité du service public pour l'emploi", Revue Française d'Economie (2015), avec S. Blasco et F. Fontaine. [doi]

  • "Informality in Developing Countries: Regulations and Fiscal Policies", Journal of Economic Dynamics and Control, (2015), with O. Charlot and C. Terra. [doi]

  • "Does Bargaining Matter in the Small Firm's Matching Model ?", Labour Economics, (2013), with O. l'Haridon and S. Perez-Duarte. [doi]

  • "Efficiency in a Search and Matching Economy with a Competitive Informal Sector", Economic Letters (2013), with O. Charlot and M. Ulus. [doi]

  • "Education and Employment Protection", Labour Economics (2013), with O. Charlot. [doi]

  • "Dualisme des contrats de travail et rotation de la main d’œuvre", Revue Française d'Economie (2012), avec P. Cahuc et O. Charlot. [doi]

  • "Réforme de la protection de l'emploi et performance du marché du travail dans un modèle d'appariement", Annales d'économie et de Statistique (2010), avec O. l'Haridon.

  • "Réforme de la protection de l'emploi et inégalités face au chômage dans un modèle d'appariement", Recherches Economiques de Louvain (2010), avec O. Charlot. [doi]

  • "Employment Protection Reform in Search Economies", European Economic Review (2009), with O. l'Haridon. [doi]

  • "Politiques du marché du travail et négociations par branches d’activité dans un modèle d’appariement", Recherches Economiques de Louvain (2009), avec O. l'Haridon. [doi]

  • “Unemployment Compensation Finance and Labor Market Rigidity”, Journal of Public Economics (2004), with P. Cahuc. [doi]

  • "Protection de l'emploi et performance du marché du travail", Revue Française d'Economie (2003), with O. l'Haridon.

  • "Faut-il moduler les cotisations patronales à l'assurance chômage ?", Revue Economique (2001), avec P. Cahuc. [doi]


  • F. Fontaine et F. Malherbet, (2016), "CDD vs. CDI, les effets d'un dualisme contractuel", Presses de Sciences Po.

Media coverage: [The conversation] [l'Opinion] [Alternatives économiques] [BFM Business] [Liaisons sociales] [Entreprise & Carrières]


Reports / Notes

  • "An anatomy of the French labour market: Country case study on labour market segmentation", ILO Employment Working Papers (2013), with Thomas Le Barbanchon [pdf]

  • "L'accompagnement des demandeurs d'emploi", Rapport pour la chaire de sécurisation des parcours professionnels (2013), avec F. Fontaine [pdf]

  • "Les effets macroéconomiques du Contrat unique d’insertion", LIEPP Policy Brief #2 (2012), avec F. Fontaine [pdf]

  • "Take-up of Welfare Benefits in OECD countries: a Review of Evidence", OECD Working Papers. (2004), with V. Hernanz and M. Pellizzari [pdf]

In the media