Flexible Employment, Job Flows and Labour Productivity

Lorenzo Cappellari, Carlo Dell'Aringa () and Marco Leonardi
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Carlo Dell'Aringa: DISCE, Università Cattolica

No ieil0060, DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: In this paper we provide evidence on the effects of temporary employment on job flows, labour productivity and investment. As a source of identification, we exploit reforms in the legislation of fixed-term and apprenticeships contracts whose implementation varied over regions and industries. Results indicate that the reform of apprenticeship contracts has increased the turnover of workers and has induced capital-labor substitution in favour of labour, with an overall productivity-enhancing effect. The reform of fixed-term contracts instead does not seem to have had the intended results and may have made the use of these contracts more costly rather than less costly. Ineffectiveness of the reform may also depend on firms substituting across different types of labour: we estimate elasticities of substitution that are consistent with this interpretation.

Keywords: employment contracts; productivity; institutional changes (search for similar items in EconPapers)
JEL-codes: J24 J41 (search for similar items in EconPapers)
Pages: 32
Date: 2010-10
New Economics Papers: this item is included in nep-bec, nep-eff, nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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