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Temporary contracts, employees' effort and labour productivity: the evidence for Italy

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  • Emanuela Ghignoni

Abstract

This paper discusses the thesis (recently pointed out by empirical evidence on Swiss data) that, if temporary contracts are utilised by firms as a tool to screen potential new employees and provide workers with a “stepping stone†into permanent employment, then temporary employees have an incentive to provide more effort than their permanent colleagues. After a theoretical discussion, the paper focuses on the econometrical analysis of this thesis in an institutional context, like the Italian one, in which permanent workers are rather protected and firms are likely to use temporary contracts mainly to adjust the workforce during the cycle. Data are drawn from ECHP (1996-2001) for Italy and from ISFOL-Plus 2005. The paper concludes by pointing out that a higher effort does not necessary mean higher labour productivity, and suggests the necessary public policies to improve productivity in labour markets characterised by a growing rate of temporary jobs.

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Bibliographic Info

Paper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 111.

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Length: 28
Date of creation: Feb 2008
Date of revision:
Handle: RePEc:sap:wpaper:wp111

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Keywords: Temporary employment; Effort; Labour productivity; Job satisfaction.;

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  1. Barmby, T A & Orme, C D & Treble, John G, 1991. "Worker Absenteeism: An Analysis Using Microdata," Economic Journal, Royal Economic Society, vol. 101(405), pages 214-29, March.
  2. Johansson, Per & Palme, Marten, 1996. "Do economic incentives affect work absence? Empirical evidence using Swedish micro data," Journal of Public Economics, Elsevier, vol. 59(2), pages 195-218, February.
  3. Cecilia Albert & Carlos García-Serrano & Virginia Hernanz, 2004. "Firm-provided training and temporary contracts," Spanish Economic Review, Springer, vol. 7(1), pages 67-88, January.
  4. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  5. Emanuela GHIGNONI, 2007. "Education, Training and Probability of Transition to Permanent Employment in the Italian Regional Labour Markets," Rivista Italiana degli Economisti, SIE - Societa' Italiana degli Economisti (I), vol. 12(1), pages 79-124, April.
  6. Per Johansson & Mårten Palme, 2002. "Assessing the Effect of Public Policy on Worker Absenteeism," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 381-409.
  7. Tim A. Barmby & Marco G. Ercolani & John G. Treble, 2002. "Sickness Absence: An International Comparison," Economic Journal, Royal Economic Society, vol. 112(480), pages F315-F331, June.
  8. Gianna Barbieri & Paolo Sestito, 2008. "Temporary Workers in Italy: Who Are They and Where They End Up," LABOUR, CEIS, vol. 22(1), pages 127-166, 03.
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Cited by:
  1. Tealdi, Cristina, 2011. "Typical and atypical employment contracts: the case of Italy," MPRA Paper 39456, University Library of Munich, Germany.
  2. Emanuela Ghignoni, 2011. "Young workers‟ overeducation and cohort effects in “P.I.G.S.†countries versus the Netherlands: a pseudo-panel analysis," Working Papers 147, University of Rome La Sapienza, Department of Public Economics.

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