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Cross-Sectors Skill Intensity, Productivity and Temporary Employment

  • Lisi, Domenico
  • Malo, Miguel

In this article, we study the impact of temporary employment (TE) on productivity and, in particular, we wonder if it differs according to sectors skill intensity. Our data set is an ad-hoc industry-level panel of European countries, which allows to deal with endogeneity problems. Our main result is that TE has a negative impact on productivity, but it is more damaging in skilled sectors. While an increase of 10 percentage points of the share of TE in skilled sectors decrease labour productivity growth about 1-1.5%, in unskilled sectors the decrease would be 0.5-0.8%. This result is robust to changes in the skill intensity index and in the sample composition. We also discuss policy implications of this result for labour market regulation.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 56470.

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Date of creation: 05 Jun 2014
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Handle: RePEc:pra:mprapa:56470
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  1. Engellandt, Axel & Riphahn, Regina T., 2005. "Temporary contracts and employee effort," Labour Economics, Elsevier, vol. 12(3), pages 281-299, June.
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  8. Andrea Bassanini & Danielle Venn, 2007. "Assessing the Impact of Labour Market Policies on Productivity: A Difference-in-Differences Approach," OECD Social, Employment and Migration Working Papers 54, OECD Publishing.
  9. Antonio Ciccone & Elias Papaioannou, 2006. "Red tape and delayed entry," Economics Working Papers 985, Department of Economics and Business, Universitat Pompeu Fabra.
  10. Lisi, Domenico, 2013. "The impact of temporary employment and employment protection on labour productivity : evidence from an industry-level panel of EU countries," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(2), pages 119-144.
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  13. Domenico Lisi, 2012. "Analysys Of Employment Protection Legislation: A Model With Endogenous Labour Productivity," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 4(2 (July)), pages 209-245.
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  15. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LP, vol. 7(4), pages 465-506, December.
  16. Bond, Stephen & Van Reenen, John, 2007. "Microeconometric Models of Investment and Employment," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 65 Elsevier.
  17. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
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  19. Bassanini, Andrea & Nunziata, Luca & Venn, Danielle, 2008. "Job Protection Legislation and Productivity Growth in OECD Countries," IZA Discussion Papers 3555, Institute for the Study of Labor (IZA).
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