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Flexibility and Productivity: The Case of the Labour Supply Contract Agreement in Italy

Author

Listed:
  • Pasquale Tridico
  • Sebastiano Fadda
  • Antonella Mennella

Abstract

This study analyses the effect of a flexible labour contract, such as the Labour Supply Contract - LSC (known in Italy as "Contratto di Somministrazione"), on employment and labour productivity. Its features (income support if a worker is temporarily without a job mission and training for workers with or without a job mission) allow for a flexicurity model. The estimates suggest that labour flexibility does not produce positive results in productivity, although the negative correlation is mitigated when it is associated with training activities. In general, flexibility produces negative effects, albeit decreasing with training activity, on productivity.

Suggested Citation

  • Pasquale Tridico & Sebastiano Fadda & Antonella Mennella, 2014. "Flexibility and Productivity: The Case of the Labour Supply Contract Agreement in Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, September.
    • Handle: RePEc:rar:journl:0286
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Labour flexibility; Labour productivity; Labour supply contract; Flexicurity; Training;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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