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Productivity in German manufacturing firms: Does fixed-term employment matter?

  • Sebastian Nielen

    ()

    (Schumpeter School of Business and Economics University of Wuppertal)

  • Alexander Schiersch

    ()

    (German Institute for Economic Research)

A growing proportion of employees are working under fixed-term contracts. This paper empirically analyzes whether this strategy actually improves firm productivity. To this end, a large dataset of German manufacturing firms and various panel data models are used in order to reveal the expected non-linear effect. Thereby the analysis also takes into account distortions that may result from selection into the use of fixed-term employment. The results of the investigation show that there is no significant effect of fixed-term employment on labor productivity when controlling for the selection effect.

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File URL: http://elpub.bib.uni-wuppertal.de/servlets/DerivateServlet/Derivate-2674/sdp12004.pdf
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Paper provided by Universitätsbibliothek Wuppertal, University Library in its series Schumpeter Discussion Papers with number sdp12004.

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Length: 28
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:bwu:schdps:sdp12004
Contact details of provider: Web page: http://elpub.bib.uni-wuppertal.de

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  10. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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  12. Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
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  14. 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.
  15. Jones, Melanie K. & Jones, Richard J. & Latreille, Paul L. & Sloane, Peter J., 2008. "Training, Job Satisfaction and Workplace Performance in Britain: Evidence from WERS 2004," IZA Discussion Papers 3677, Institute for the Study of Labor (IZA).
  16. 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.
  17. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
  18. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  19. Sarah Brown & John G. Sessions, 2005. "Employee Attitudes, Earnings and Fixed-Term Contracts: International Evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(2), pages 296-317, July.
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  21. Boockmann, Bernhard & Hagen, Tobias, 2005. "Fixed-term Contracts as Sorting Mechanisms: Evidence From Job Durations in West Germany," ZEW Discussion Papers 05-85, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  22. Gabriele Fischer & Florian Janik & Dana Müller & Alexandra Schmucker, 2009. "European Data Watch: The IAB Establishment Panel - Things Users Should Know," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(1), pages 133-148.
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  24. Wang, Ruqu & Weiss, Andrew, 1998. "Probation, layoffs, and wage-tenure profiles: A sorting explanation," Labour Economics, Elsevier, vol. 5(3), pages 359-383, September.
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