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Productivity, wages and profits among Belgian firms: do fixed-term contracts matter?

Author

Listed:
  • Andrea Garnero
  • Romina Giuliano
  • Benoit Mahy
  • François Rycx

Abstract

Purpose - – The purpose of this paper is to estimate the impact of fixed-term contracts (FTCs) on labour productivity, wages (i.e. labour cost), and productivity-wage gaps (i.e. profits). Design/methodology/approach - – The authors apply dynamic panel data techniques to detailed Belgian linked employer-employee panel data covering the period 1999-2006. Findings - – Results indicate that FTCs exert stronger positive effects on productivity than on wages and (accordingly) that the use of FTCs increases firms’ profitability. Originality/value - – This paper is one of the first to examine the FTC-productivity-wage nexus while addressing three important methodological issues related to the state dependency of the three explained variables, to firm time-invariant heterogeneity, and to the endogeneity of FTCs.

Suggested Citation

  • Andrea Garnero & Romina Giuliano & Benoit Mahy & François Rycx, 2016. "Productivity, wages and profits among Belgian firms: do fixed-term contracts matter?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(2), pages 303-322, May.
    • Handle: RePEc:eme:ijmpps:v:37:y:2016:i:2:p:303-322
    DOI: 10.1108/IJM-12-2014-0263
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    Citations

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    Cited by:

    1. Duman, Anil, 2020. "Non-Standard Employment and Wage Differences across Gender: a quantile regression approach," GLO Discussion Paper Series 664, Global Labor Organization (GLO).
    2. Jurica Bosna, 2018. "Estimation Of The Great Decoupling On The Example Of Croatia, As Compared With Germany And Poland," Poslovna izvrsnost/Business Excellence, Faculty of Economics and Business, University of Zagreb, vol. 12(1), pages 33-52.
    3. Wadesango N & Gwangwadza D C & Mhaka C & Wadesango V O, 2018. "The Impact of Labour Force Reduction on the Financial Performance of Manufacturing Companies," Journal of Economics and Behavioral Studies, AMH International, vol. 10(2), pages 20-32.
    4. Sandrini, Luca, 2021. "Incentives for labour-augmenting innovations in vertical markets: The role of wage rate," International Journal of Industrial Organization, Elsevier, vol. 75(C).
    5. Luis A. Gil-Alana & Marinko Skare, 2018. "Testing the great decoupling: a long memory approach," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(4), pages 801-820, November.
    6. Alessia Matano, 2022. "Spatial externalities in big cities and duality of the labour market," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 471-498, March.

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