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Heterogeneous Effects of Temporary Employment on Productivity and Wages in the Italian Business Firms

Andrea Ricci
Authors registered in the RePEc Author Service: Valeria Cirillo ()

No 50, Working Papers from ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro

Abstract: What is the link between flexible employment, labour productivity and wages? Taking advantage of an original firm level database combining information from Rilevazione Imprese e Lavoro (RIL) conducted by INAPP on a representative sample of Italian firms with the AIDA archive, we explore the nexus between temporary employment, labour productivity and wages along the distributions of labour productivity and wages. By applying conditional quantile technique with additive fixed effects, we detect a strong negative relationship between the use of fixed-term contracts and both labour productivity and wages. The effect of temporary employment on firms’ labour productivity and wages is heterogeneous along the distributions. Low-productive firms - recurring more to temporary contracts - are also more affected by an incremental use of short-term work arrangements risking to be trapped in a vicious cycle of low-productivity and low-wages.

Keywords: Labour productivity; Wages; Temporary employment; Firm-level analysis (search for similar items in EconPapers)
JEL-codes: J2 J24 J31 L25 (search for similar items in EconPapers)
Date: 2020-01
New Economics Papers: this item is included in nep-bec, nep-cta, nep-eff, nep-eur and nep-lma
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