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

Romina Giuliano, Stephan Kampelmann, Benoît Mahy () and Francois Rycx
Additional contact information
Romina Giuliano: University of Mons
Benoît Mahy: University of Mons

No 10579, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: fixed-term contracts; productivity; wages; profits; sectors; linked panel data (search for similar items in EconPapers)
JEL-codes: D24 J24 J31 M12 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2017-02
New Economics Papers: this item is included in nep-eff, nep-eur and nep-lma
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Citations: View citations in EconPapers (20)

Published - published in: British Journal of Industrial Relations, 2017, 55 (2), 421-449

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Related works:
Journal Article: Short Notice, Big Difference? The Effect of Temporary Employment on Firm Competitiveness across Sectors (2017)
Working Paper: Short notice, big difference? The effect of temporary employment on firm competitiveness across sectors (2017)
Working Paper: Short Notice, Big Difference? The Effect of Temporary Employment on Firm Competitiveness across Sectors (2017)
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