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Short Notice, Big Difference? The Effect of Temporary Employment on Firm Competitiveness across Sectors

Listed author(s):
  • Giuliano, Romina

    (University of Mons)

  • Kampelmann, Stephan

    ()

    (Free University of Brussels)

  • Mahy, Benoît

    ()

    (University of Mons)

  • Rycx, Francois

    ()

    (Free University of Brussels)

Registered author(s):

    This paper is one of the first to examine how the use of fixed-term employment contracts (FTCs) affects firm competitiveness (i.e. productivity, wages and profits) while controlling for key econometric issues such as time-invariant unobserved workplace characteristics, endogeneity and state dependence. We apply dynamic panel data estimation techniques to detailed Belgian linked employer-employee data covering all years from 1999 to 2010. Results show that the effects of FTCs on firm competitiveness vary across sectors: while temporary employment is found to enhance productivity and profits in (labour-intensive) services, this is not the case in manufacturing and construction.

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    File URL: http://ftp.iza.org/dp10579.pdf
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    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10579.

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    Length: 37 pages
    Date of creation: Feb 2017
    Publication status: forthcoming in: British Journal of Industrial Relations, 2017
    Handle: RePEc:iza:izadps:dp10579
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