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Flexible Employment, Job Flows and Labour Productivity

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Author Info

  • Lorenzo Cappellari

    ()
    (DISCE, Università Cattolica)

  • Carlo Dell'Aringa

    ()
    (DISCE, Università Cattolica)

  • Marco Leonardi

    ()
    (Dipartimento di Scienze Economiche, Aziendali e Statistiche Università degli Studi di Milano)

Abstract

In this paper we provide evidence on the effects of temporary employment on job flows, labour productivity and investment. As a source of identification, we exploit reforms in the legislation of fixed-term and apprenticeships contracts whose implementation varied over regions and industries. Results indicate that the reform of apprenticeship contracts has increased the turnover of workers and has induced capital-labor substitution in favour of labour, with an overall productivity-enhancing effect. The reform of fixed-term contracts instead does not seem to have had the intended results and may have made the use of these contracts more costly rather than less costly. Ineffectiveness of the reform may also depend on firms substituting across different types of labour: we estimate elasticities of substitution that are consistent with this interpretation.

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File URL: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro/Quaderni/ieil0060.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro with number ieil0060.

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Length: 32
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:ctc:serie4:ieil0060

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Web page: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro
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Keywords: employment contracts; productivity; institutional changes;

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References

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  1. Federico Cingano & Marco Leonardi & Julian Messina & Giovanni Pica, 2009. "The Effect of Employment Protection Legislation and Financial Market Imperfections on Investment: Evidence from a Firm-Level Panel of EU countries," CSEF Working Papers 227, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  2. William Kerr & Adriana Kugler & David Autor, 2007. "Do Employment Protections Reduce Productivity? Evidence from U.S. States," Working Papers 07-04, Center for Economic Studies, U.S. Census Bureau.
  3. Alejandro Micco & Carmen Pagés-Serra, 2004. "Employment Protection and Gross Job Flows: A Differences-in-Differences Approach," Research Department Publications 4365, Inter-American Development Bank, Research Department.
  4. Winfried Koeniger & Marco Leonardi, 2007. "Capital deepening and wage differentials: Germany versus US," Economic Policy, CEPR & CES & MSH, vol. 22, pages 71-116, 01.
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Cited by:
  1. Heyman, Fredrik & Skedinger, Per, 2011. "Employment Protection Reform, Enforcement in Collective Agreements and Worker Flows," Working Paper Series 876, Research Institute of Industrial Economics.
  2. Bosio, Giulio & Leonardi, Marco, 2011. "The Impact of Bologna Process on the Graduate Labour Market: Demand and Supply," IZA Discussion Papers 5789, Institute for the Study of Labor (IZA).
  3. Sebastian Nielen & Alexander Schiersch, 2012. "Productivity in German manufacturing firms: Does fixed-term employment matter?," Schumpeter Discussion Papers sdp12004, Universitätsbibliothek Wuppertal, University Library.

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