What Do Unions Do to Temporary Employment?
AbstractIn the EU, one in seven employees work on temporary contracts associated with lower pay and less training. Using workplace-level data from 21 countries, I show that, in contrast with previous evidence for the US, unionized workplaces are more likely to use temporary employment across Europe. To address the endogeneity of unions, I then use a British dataset and exploit variation over time and across occupations to control for workplace unobserved heterogeneity. This confirms that unions contribute to creating contract duality in the labour market and thus do not limit the ability of firms to adjust employment through flexible contracts.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4554.
Length: 39 pages
Date of creation: Nov 2009
Date of revision:
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Find related papers by JEL classification:
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-27 (All new papers)
- NEP-BEC-2009-11-27 (Business Economics)
- NEP-EEC-2009-11-27 (European Economics)
- NEP-LAB-2009-11-27 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Addison, John T. & Teixeira, Paulino & Zwick, Thomas, 2006.
"Works Councils and the Anatomy of Wages,"
IZA Discussion Papers
2474, Institute for the Study of Labor (IZA).
- Salvatori, Andrea, 2012.
"Union threat and non-union employment: A natural experiment on the use of temporary employment in British firms,"
Elsevier, vol. 19(6), pages 944-956.
- Salvatori, Andrea, 2011. "Union Threat and Non-Union Employment: A Natural Experiment on the Use of Temporary Employment in British Firms," IZA Discussion Papers 5574, Institute for the Study of Labor (IZA).
- Dräger, Vanessa & Marx, Paul, 2012. "Do Firms Demand Temporary Workers When They Face Workload Fluctuation? Cross-Country Firm-Level Evidence on the Conditioning Effect of Employment Protection," IZA Discussion Papers 6894, Institute for the Study of Labor (IZA).
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