Temporary contracts, employees' effort and labour productivity: the evidence for Italy
AbstractThis 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 â€œstepping stoneâ€ 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 InfoPaper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 111.
Date of creation: Feb 2008
Date of revision:
Temporary employment; Effort; Labour productivity; Job satisfaction.;
Other versions of this item:
- Ghignoni Emanuela, 2009. "Temporary Contracts, Employees' Effort and Labour Productivity: The Evidence for Italy," Economia politica, Società editrice il Mulino, issue 2, pages 279-314.
- M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
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