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Atypical work: a threat to labour productivity growth? Some evidence from Italy

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  • Rossella Bardazzi
  • Silvia Duranti

Abstract

Various theories suggest the existence of a negative relationship between the use of atypical employment contracts and productivity growth, arguing that firms’ utilisation of atypical contracts may reduce the incentive to innovate and internal training, inducing firms to follow a ‘low-road’ to competitiveness, based upon cost-cutting strategies.This paper aims to provide new evidence on the occurrence of these effects in the Italian economy, where changes in labour legislation from the mid-Nineties onwards, associated with an ‘institutional’ wage moderation period, have brought about a significant process of job creation, but also an appreciable slowdown in labour productivity.This issue is investigated using a microeconomic approach, taking a rich source of microdata for firms and estimating a dynamic model for labour productivity on a pseudo-panel of firms for the period 2003-2008.The results support the hypothesis of a negative impact of external labour flexibility on labour productivity growth at firm level, such effect proving stronger for small and medium than for large enterprises and of varying magnitude for the different atypical contracts.

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  • Rossella Bardazzi & Silvia Duranti, 2016. "Atypical work: a threat to labour productivity growth? Some evidence from Italy," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 620-643, September.
    • Handle: RePEc:taf:irapec:v:30:y:2016:i:5:p:620-643
    DOI: 10.1080/02692171.2016.1165656
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    1. 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 of Labor Economics (IZA).
    2. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2007. "Temporary jobs: Port of entry, Trap, or just Unobserved Heterogeneity?," LABORatorio R. Revelli Working Papers Series 68, LABORatorio R. Revelli, Centre for Employment Studies.
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    Cited by:

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    2. Luca Cattani & Stefano Dughera & Fabio Landini, 2023. "Interlocking complementarities between job design and labour contracts," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 501-528, July.
    3. Galina SAVELIEVA & Svetlana ZAHAROV, 2021. "Challenges Of Labor Market Transformations Towards Social Policies In The Republic Of Moldova," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 6(3), pages 95-120.
    4. Alessandro Arrighetti & Eleonora Bartoloni & Fabio Landini & Chiara Pollio, 2019. "Exuberant Proclivity Towards Non-Standard Employment:Evidence from Linked Employer-Employee Data," Working Papers 1905, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    5. Calcagnini, Giorgio & Marin, Giovanni & Perugini, Francesco, 2021. "Labour flexibility, internal migration and productivity in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 308-320.
    6. A. Arrighetti & L. Cattani & F. Landini & A. Lasagni, 2019. "Work Flexibility and Firm Growth," Economics Department Working Papers 2019-EP04, Department of Economics, Parma University (Italy).
    7. Kanang Amos Akims & Perez Ayieko Onono & Dianah Mukwate Ngui, . "Trade Liberalization and Productivity in the Nigerian Manufacturing Sector," Journal of Economic and Sustainable Growth 3, Office Of The Chief Economist, Development Bank of Nigeria.

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