Employment effects of restricting fixed-term contracts: Theory and evidence

Pierre Cahuc, Pauline Carry, Franck Malherbet, Pedro Silva Martins

Research output: Other contribution


In 2009, Portugal restricted the use of fixed-term contracts by firms with over 750 employees. This column finds that while the reform was successful in reducing the number of fixed-term jobs, it did not increase the number of permanent contracts and it decreased employment in large firms. Despite positive spillovers on small firms, the reform reduced total employment and had negative effects on the welfare of employees and unemployed workers.
Original languageEnglish
Typeblog post
Publication statusPublished - 20 Jan 2022


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