The productivity effect of permanent and temporary labor contracts in the Italian manufacturing sector
This paper studies the effect of permanent and temporary labor contracts on both labor-augmenting and TFP-augmenting technological factors using a panel dataset of Italian manufacturing firms. The empirical analysis applies a structural approach in which firm TFP follows a controlled Markov process that is affected by the relative use of labor contracts, and labor services are perfect substitutes but with different labor-augmenting factors. The empirical results show that when including labor-contract composition in the TFP process: i) the difference between permanent and temporary contracts in the labor-augmenting productivity factor is not significant and ii) the incidence of permanent contracts in total contracts has a positive effect on TFP dynamics.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Emanuela Ghignoni, 2008.
"Temporary contracts, employees' effort and labour productivity: the evidence for Italy,"
111, University of Rome La Sapienza, Department of Public Economics.
- 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.
- Casquel, Elena & Cunyat, Antoni, 2008. "Temporary contracts, employment protection and skill: A simple model," Economics Letters, Elsevier, vol. 100(3), pages 333-336, September.
- Addessi, William & Saltari, Enrico & Tilli, Riccardo, 2014. "R&D, innovation activity, and the use of external numerical flexibility," Economic Modelling, Elsevier, vol. 36(C), pages 612-621.
- S. Iranzo & F. Schivardi & E. Tosetti, 2006.
"Skill dispersion and firm productivity: an analysis with employer-employee matched data,"
Working Paper CRENoS
200617, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Susana Iranzo & Fabiano Schivardi & Elisa Tosetti, 2008. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," Journal of Labor Economics, University of Chicago Press, vol. 26(2), pages 247-285, 04.
- Iranzo, Susana & Schivardi, Fabiano & Tosetti, Elisa, 2006. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," CEPR Discussion Papers 5539, C.E.P.R. Discussion Papers.
- Susanna Iranzo & Fabiano Schivardi & Elisa Tosetti, 2006. "Skill dispersion and firm productivity; an analysis with employer-employee matched data," Temi di discussione (Economic working papers) 577, Bank of Italy, Economic Research and International Relations Area.
- Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2010.
"Does Labor Diversity Affect Firm Productivity?,"
10-12, University of Aarhus, Aarhus School of Business, Department of Economics.
- Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2012. "Does Labor Diversity Affect Firm Productivity?," IZA Discussion Papers 6973, Institute for the Study of Labor (IZA).
- Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2011. "Does Labor Diversity affect Firm Productivity?," Norface Discussion Paper Series 2011022, Norface Research Programme on Migration, Department of Economics, University College London.
- Dimitri Paolini & Juan de Tena, 2012.
"Short or long-term contract? Firm’s optimal choice,"
Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(1), pages 1-18, February.
- PAOLINI, Dimitri & TENA, Juan de Dios, "undated". "Short or long-term contract? Firm's optimal choice," CORE Discussion Papers RP 2502, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bee Yan Aw & Mark J. Roberts & Daniel Yi Xu, 2009.
"R&D Investment, Exporting, and Productivity Dynamics,"
NBER Working Papers
14670, National Bureau of Economic Research, Inc.
- Bee Yan Aw & Mark J. Roberts & Daniel Yi Xu, 2011. "R&D Investment, Exporting, and Productivity Dynamics," American Economic Review, American Economic Association, vol. 101(4), pages 1312-1344, June.
- Engellandt, Axel & Riphahn, Regina, 2004.
"Temporary Contracts and Employee Effort,"
CEPR Discussion Papers
4178, C.E.P.R. Discussion Papers.
- Cappellari, Lorenzo & Dell’Aringa, Carlo & Leonardi, Marco, 2012.
"Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms,"
IZA Discussion Papers
6526, Institute for the Study of Labor (IZA).
- Lorenzo Cappellari & Carlo Dell’Aringa & Marco Leonardi, 2012. "Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms," Economic Journal, Royal Economic Society, vol. 122(562), pages 188-215, 08.
- Lorenzo Cappellari & Carlo Dell'Aringa & Marco Leonardi, 2011. "Temporary Employment, Job Flows and Productivity: A Tale of two Reforms," CESifo Working Paper Series 3520, CESifo Group Munich.
- Victor Aguirregabiria & Cesar Alonso-Borrego, 2014.
"Labor Contracts And Flexibility: Evidence From A Labor Market Reform In Spain,"
Western Economic Association International, vol. 52(2), pages 930-957, 04.
- Alonso-Borrego, César & Aguirregabiria, Víctor, 1999. "Labor contracts and flexibility : evidence from a labor markt reform in Spain," DES - Working Papers. Statistics and Econometrics. WS 6302, Universidad Carlos III de Madrid. Departamento de Estadística.
- Victor Aguirregabiria & Cesar Alonso-Borrego, 2009. "Labor Contracts and Flexibility: Evidence from a Labor Market Reform in Spain," Working Papers tecipa-346, University of Toronto, Department of Economics.
- Alonso-Borrego, César & Aguirregabiria, Víctor, 2009. "Labor contracts and flexibility : evidence from a labor market reform in Spain," UC3M Working papers. Economics we091811, Universidad Carlos III de Madrid. Departamento de Economía.
- Olley, G Steven & Pakes, Ariel, 1996.
"The Dynamics of Productivity in the Telecommunications Equipment Industry,"
Econometric Society, vol. 64(6), pages 1263-1297, November.
- G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc.
- George S Olley & Ariel Pakes, 1992. "The Dynamics Of Productivity In The Telecommunications Equipment Industry," Working Papers 92-2, Center for Economic Studies, U.S. Census Bureau.
- Mirella Damiani & Fabrizio Pompei, 2010. "Labour Protection and Productivity in EU Economies: 1995-2005," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 7(2), pages 373-411, December.
- Tito Boeri & Pietro Garibaldi, 2007.
"Two Tier Reforms of Employment Protection: A Honeymoon Effect?,"
Carlo Alberto Notebooks
37, Collegio Carlo Alberto.
- Tito Boeri & Pietro Garibaldi, 2007. "Two Tier Reforms of Employment Protection: a Honeymoon Effect?," Economic Journal, Royal Economic Society, vol. 117(521), pages 357-385, 06.
- Dolado, Juan J. & Stucchi, Rodolfo, 2008.
"Do Temporary Contracts Affect TFP? Evidence from Spanish Manufacturing Firms,"
IZA Discussion Papers
3832, Institute for the Study of Labor (IZA).
- Dolado, Juan J. & Stucchi, Rodolfo, 2008. "Do Temporary Contracts Affect TFP? Evidence from Spanish Manufacturing Firms," CEPR Discussion Papers 7055, C.E.P.R. Discussion Papers.
- Andrea Caggese & Vicente Cuñat, 2008.
"Financing Constraints and Fixed-term Employment Contracts,"
Royal Economic Society, vol. 118(533), pages 2013-2046, November.
- Andrea Caggese & Vicente Cuñat, 2006. "Financing constraints and fixed-term employment contracts," Economics Working Papers 1010, Department of Economics and Business, Universitat Pompeu Fabra.
- Andrea Caggese & Vicente Cuñat, 2005. "Financing Constraints and Fixed-Term Employment Contracts," Working Papers 266, Barcelona Graduate School of Economics.
- Bienvenido Ortega & Andrés Marchante, 2010. "Temporary contracts and labour productivity in Spain: a sectoral analysis," Journal of Productivity Analysis, Springer, vol. 34(3), pages 199-212, December.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Olsson, Martin, 2007.
"Employment Protection and Sickness Absence,"
Working Paper Series
717, Research Institute of Industrial Economics.
- Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
- Bassanini, Andrea & Nunziata, Luca & Venn, Danielle, 2008.
"Job Protection Legislation and Productivity Growth in OECD Countries,"
IZA Discussion Papers
3555, Institute for the Study of Labor (IZA).
- Andrea Bassanini & Luca Nunziata & Danielle Venn, 2009. "Job protection legislation and productivity growth in OECD countries," Economic Policy, CEPR;CES;MSH, vol. 24, pages 349-402, 04.
- Simon Gaechter & Armin Falk, "undated".
"Reputation and Reciprocity: Consequences for the Labour Relation,"
IEW - Working Papers
019, Institute for Empirical Research in Economics - University of Zurich.
- Gachter, Simon & Falk, Armin, 2002. " Reputation and Reciprocity: Consequences for the Labour Relation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(1), pages 1-26.
- Ulrich Doraszelski & Jordi Jaumandreu, 2013. "R&D and Productivity: Estimating Endogenous Productivity," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1338-1383.
- Alfred Kleinknecht & Remco Oostendorp & Menno Pradhan & C. W. M. Naastepad, 2006. "Flexible Labour, Firm Performance and the Dutch Job Creation Miracle," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(2), pages 171-187.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:36:y:2014:i:c:p:666-672. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.