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What Do Unions Do to Temporary Employment?

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  • Salvatori, Andrea

    ()
    (ISER, University of Essex)

Abstract

In 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 Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4554.

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Length: 39 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4554

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Keywords: temporary employment; unions; panel data;

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  1. Addison, John T. & Teixeira, Paulino & Zwick, Thomas, 2006. "Works councils and the anatomy of wages," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 06-86, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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Cited by:
  1. 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).
  2. Salvatori, Andrea, 2012. "Union threat and non-union employment: A natural experiment on the use of temporary employment in British firms," Labour Economics, Elsevier, Elsevier, vol. 19(6), pages 944-956.

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