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Productivity in German manufacturing firms: Does fixed-term employment matter?

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Author Info

  • Sebastian Nielen

    () (Schumpeter School of Business and Economics University of Wuppertal)

  • Alexander Schiersch

    () (German Institute for Economic Research)

Abstract

A growing proportion of employees are working under fixed-term contracts. This paper empirically analyzes whether this strategy actually improves firm productivity. To this end, a large dataset of German manufacturing firms and various panel data models are used in order to reveal the expected non-linear effect. Thereby the analysis also takes into account distortions that may result from selection into the use of fixed-term employment. The results of the investigation show that there is no significant effect of fixed-term employment on labor productivity when controlling for the selection effect.

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File URL: http://elpub.bib.uni-wuppertal.de/edocs/dokumente/fbb/wirtschaftswissenschaft/sdp/sdp12/sdp12004.pdf
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Bibliographic Info

Paper provided by Universitätsbibliothek Wuppertal, University Library in its series Schumpeter Discussion Papers with number sdp12004.

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Length: 28
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:bwu:schdps:sdp12004

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Web page: http://elpub.bib.uni-wuppertal.de

Related research

Keywords: fixed-term employment; labor productivity; manufacturing;

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References

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Cited by:
  1. Smirnykh, Larisa & Wörgötter, Andreas, 2013. "Why Do Russian Firms Use Fixed-Term and Agency Work Contracts?," IZA Policy Papers 54, Institute for the Study of Labor (IZA).

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