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Fixed or open-ended? Labor contract and productivity in the Colombian manufacturing sector

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  • Francesca Castellani
  • Giulia Lotti
  • Nataly Obando

Abstract

Using the Colombian Annual Manufacturing Survey (AMS) between 2000 and 2014, this paper investigates the effect of labor contract modalities on firm productivity within the industrial sector through a structural model. We find that the elasticity of revenue with respect to temporary workers is often lower than that with respect to permanent workers, but not in small firms, where some forms of flexibility might lead to productivity gains.

Suggested Citation

  • Francesca Castellani & Giulia Lotti & Nataly Obando, 2020. "Fixed or open-ended? Labor contract and productivity in the Colombian manufacturing sector," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 199-223, January.
  • Handle: RePEc:taf:recsxx:v:23:y:2020:i:1:p:199-223
    DOI: 10.1080/15140326.2020.1729582
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    References listed on IDEAS

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    1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    2. Victor Aguirregabiria & Cesar Alonso-Borrego, 2014. "Labor Contracts And Flexibility: Evidence From A Labor Market Reform In Spain," Economic Inquiry, Western Economic Association International, vol. 52(2), pages 930-957, April.
    3. 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.
    4. Peter AUER & Janine BERG & Ibrahim COULIBALY, 2005. "Is a stable workforce good for productivity?," International Labour Review, International Labour Organization, vol. 144(3), pages 319-343, September.
    5. Romina Giuliano & Stephan Kampelmann & Benoît Mahy & François Rycx, 2017. "Short Notice, Big Difference? The Effect of Temporary Employment on Firm Competitiveness across Sectors," British Journal of Industrial Relations, London School of Economics, vol. 55(2), pages 421-449, June.
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    Cited by:

    1. Marie Boltz & Bart Cockx & Ana Maria Diaz & Luz Magdalena Salas, 2020. "How Does Working-Time Flexibility Affect Workers’ Productivity in a Routine Job? Evidence from a Field Experiment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 20/1007, Ghent University, Faculty of Economics and Business Administration.
    2. Arango, Luis E. & Castellani, Francesca & Obando, Nataly, 2019. "Heterogeneous labour demand in the Colombian manufacturing sector," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages .1(1-19).
    3. Boltz, Marie & Cockx, Bart & Diaz, Ana Maria & Salas, Luz Magdalena, 2020. "How does working-time flexibility affect workers’ productivity in a routine job?," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    4. Luis E. Arango & Sergio A. Rivera, 2020. "“Disemployment” effects of the minimum wage in the Colombian manufacturing sector," Borradores de Economia 1107, Banco de la Republica de Colombia.

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