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What Do Unions Do to Temporary Employment?

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  • Salvatori, Andrea

    () (OECD)

Abstract

In the EU, one in seven employees work on temporary contracts associated with lower pay and less training. Using workplace-level data from 21 countries, I show that, in contrast with previous evidence for the US, unionized workplaces are more likely to use temporary employment across Europe. To address the endogeneity of unions, I then use a British dataset and exploit variation over time and across occupations to control for workplace unobserved heterogeneity. This confirms that unions contribute to creating contract duality in the labour market and thus do not limit the ability of firms to adjust employment through flexible contracts.

Suggested Citation

  • Salvatori, Andrea, 2009. "What Do Unions Do to Temporary Employment?," IZA Discussion Papers 4554, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4554
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    References listed on IDEAS

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    1. Addison, John T. & Teixeira, Paulino & Zwick, Thomas, 2006. "Works Councils and the Anatomy of Wages," IZA Discussion Papers 2474, Institute for the Study of Labor (IZA).
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    Cited by:

    1. Salvatori, Andrea, 2012. "Union threat and non-union employment: A natural experiment on the use of temporary employment in British firms," Labour Economics, Elsevier, vol. 19(6), pages 944-956.
    2. 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.
    3. Dräger, Vanessa & Marx, Paul, 2012. "Do Firms Demand Temporary Workers When They Face Workload Fluctuation? Cross-Country Firm-Level Evidence on the Conditioning Effect of Employment Protection," IZA Discussion Papers 6894, Institute for the Study of Labor (IZA).
    4. Andrea Bassanini & Eve Caroli & François Fontaine & Antoine Rebérioux, 2018. "Escaping Social Pressure: Fixed-Term Contracts in Multi-Establishment Firms," PSE Working Papers halshs-01724188, HAL.

    More about this item

    Keywords

    temporary employment; unions; panel data;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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