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Temporary job protection and productivity growth in EU economies

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  • Damiani, Mirella
  • Pompei, Fabrizio
  • Ricci, Andrea

Abstract

The present study examines cross-national and sectoral differences in Total Factor Productivity (TFP) in fourteen European countries and ten sectors from 1995 to 2007. The main aim is to ascertain the role of employment protection of temporary contracts on TFP by estimating their effects with a “difference-in-difference” approach. Results show that deregulation of temporary contracts negatively influences the growth rates of TFP in European economies and that, within sectoral analysis, the role of this liberalization is greater in industries where firms are more used to opening short-term positions. By contrast, in our observation period, restrictions on regular jobs do not cause significant effects on TFP, whereas limited regulation of product markets and higher R&D expenses positively affect efficiency growth.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29698.

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Date of creation: 18 Mar 2011
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Handle: RePEc:pra:mprapa:29698

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Keywords: productivity; labor regulation;

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Cited by:
  1. Chie Aoyagi & Giovanni Ganelli, 2013. "The Path to Higher Growth," IMF Working Papers, International Monetary Fund 13/202, International Monetary Fund.
  2. Mirella Damiani & Andrea Ricci, 2011. "Decentralised bargaining and performance related pay: new evidence from a panel of Italian firms," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 97/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  3. Nicola Acocella, . "The theoretical roots of EMU institutions and policies during the crisis," Working Papers, Sapienza University of Rome, Metodi e modelli per l'economia, il territorio e la finanza MEMOTEF 126/14, Sapienza University of Rome, Metodi e modelli per l'economia, il territorio e la finanza MEMOTEF.
  4. Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2012. "Labour Shares and Employment Protection in European Economies," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 111/2012, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  5. Nicola Acocella, . "A tale of two cities: exit policies in Washington and Frankfurt," Working Papers, Sapienza University of Rome, Metodi e modelli per l'economia, il territorio e la finanza MEMOTEF 117/13, Sapienza University of Rome, Metodi e modelli per l'economia, il territorio e la finanza MEMOTEF.
  6. Damiani, Mirella & Pompei, Fabrizio & Ricci, Andrea, 2013. "Wages and Labour Productivity: the role of Performance-Related Pay in Italian firms," MPRA Paper 52126, University Library of Munich, Germany.
  7. repec:pra:mprapa:43050 is not listed on IDEAS
  8. Francesco Venturini, 2011. "Product variety, product quality, and evidence of Schumpeterian endogenous growth: a note," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 93/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.

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