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Job Protection, Housing Market Regulation and the Youth

Author

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.

Suggested Citation

  • Antoine Bonleu & Bruno Decreuse & Tanguy Van Ypersele, 2016. "Job Protection, Housing Market Regulation and the Youth," AMSE Working Papers 1636, Aix-Marseille School of Economics, France.
    • Handle: RePEc:aim:wpaimx:1636
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    Cited by:

    1. C. Devillers & K. Parra Ramirez, 2017. "French Banks confirm their fourth rank in international banking," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 31-44, Spring.
    2. repec:bfr:quarte:2016:45:03 is not listed on IDEAS
    3. B. Bureau & M. Bürker & T. Libert, 2017. "The financial situation of companies in France in 2015," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 53-69, Spring.
    4. W. Arrata & A. Gautier & P. Lopez & I. Rahmouni-Rousseau & M. Girotti & B. Mojon & U. Szczerbowicz & M. Vari & T. Foucault, 2017. "12th Annual Central Bank Workshop on the Microstructure of Financial Markets 29-30 September 2016, Banque de France (Non-technical summary)," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 23-30, Spring.
    5. repec:bfr:quarte:2016:45:04 is not listed on IDEAS
    6. C. Berson & C. Malgouyres & S. Ray, 2017. "The labour market: institutions and reforms Summary of the third Labour Market Conference held in Aix-en-Provence on 1 and 2 December 2016 by the Aix-Marseille School of Economics and the Banque de Fr," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 45-52, Spring.
    7. repec:bfr:quarte:2016:45:06 is not listed on IDEAS
    8. repec:bfr:quarte:2016:45:05 is not listed on IDEAS
    9. A. Lalliard, 2017. "An alternative method for capturing tensions in the residential property market," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 5-13, Spring.
    10. repec:bfr:quarte:2016:45:01 is not listed on IDEAS
    11. L. Ferrara & G. Gauthier & F. Pappadà, 2017. "Fiscal consolidation episodes in OECD countries: the role of tax compliance and fiscal space," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 45, pages 15-22, Spring.
    12. repec:bfr:quarte:2016:45:02 is not listed on IDEAS

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    More about this item

    Keywords

    labor market dualism; rent default; screening;
    All these keywords.

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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