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Temporary workers and productivity: the case of Spain

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  • Rosario Sanchez
  • Luis Toharia

Abstract

The primary focus of this paper is on efficiency wages and their testable implications. In particular the nature of the relationship between efficiency wages, productivity and the make up of the labour force is analysed, modelled and subjected to an empirical test. This theory is consistent with the views of many managers and personal administrators, who tend to ascribe primary importance in wage setting to indirect control of the firm's workforce. Here we test a labour augmenting production function where effort depends not only on wages but also on the proportion of temporary workers.

Suggested Citation

  • Rosario Sanchez & Luis Toharia, 2000. "Temporary workers and productivity: the case of Spain," Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 583-591.
  • Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:583-591
    DOI: 10.1080/000368400322480
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    References listed on IDEAS

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    1. Wadhwani, Sushil B & Wall, Martin, 1991. "A Direct Test of the Efficiency Wage Model Using UK Micro-data," Oxford Economic Papers, Oxford University Press, vol. 43(4), pages 529-548, October.
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    Cited by:

    1. Rosario Sanchez & Mª Angeles Díaz Mayans, "undated". "Wage Gap and Temporality in Spain," EcoMod2006 272100077, EcoMod.
    2. Alfred Kleinknecht, 2017. "Supply-side labour market reforms: a neglected cause of the productivity crisis," Working Papers 0027, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    3. repec:aia:aiaswp:wp115 is not listed on IDEAS
    4. 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.
    5. Josep Tribo, 2005. "An analysis of the length of labour and financial contracts: a study for Spain," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 905-916.
    6. Cabrales, Antonio & Dolado, Juan J. & Mora, Ricardo, 2014. "Dual Labour Markets and (Lack of) On-the-Job Training: PIAAC Evidence from Spain and Other EU Countries," IZA Discussion Papers 8649, Institute for the Study of Labor (IZA).
    7. Hector Sala & José I. Silva, 2005. "The relevance of Post-Match LTC: Why has the Spanish labor market become as volatile as the US one?," Working Papers wpdea0515, Department of Applied Economics at Universitat Autonoma of Barcelona.
    8. Mabel Pisa & Rosario Sánchez, 2016. "Work Incentive and Productivity in Spain," Prague Economic Papers, University of Economics, Prague, vol. 2016(1), pages 99-111.
    9. repec:dgr:tudemi:20101 is not listed on IDEAS
    10. Cesar Rodriguez-Gutierrez, 2006. "An explanation of the changes in the proportion of temporary workers in Spain," Applied Economics, Taylor & Francis Journals, vol. 38(1), pages 47-62.
    11. Wachsen, Eva & Blind, Knut, 2016. "More labour market flexibility for more innovation? Evidence from employer–employee linked micro data," Research Policy, Elsevier, vol. 45(5), pages 941-950.
    12. Juan J. Dolado & Salvador Ortigueira & Rodolfo Stucchi, 2016. "Does dual employment protection affect TFP? Evidence from Spanish manufacturing firms," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 7(4), pages 421-459, November.
    13. Héctor Sala & José I. Silva, 2009. "Flexibility at the margin and labour market volatility: The case of Spain," Investigaciones Economicas, Fundación SEPI, vol. 33(2), pages 145-178, May.
    14. M. Angeles Diaz & Rosario Sanchez, 2008. "Temporary contracts and young women in Spain," Applied Economics, Taylor & Francis Journals, vol. 40(11), pages 1435-1442.
    15. 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.

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