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Analyzing Labor Market Structures and Job Security
In a certain country's economy, there are two main types of employment contracts. One type is a permanent, open-ended contract with strong legal protections against dismissal, typically held by older, more established workers. The other is a short-term, fixed-length contract with minimal protections, commonly given to younger workers and new entrants to the workforce. Explain how this two-tiered system is likely to affect the sense of job security for the younger workers.
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