Temporary Employment, Job Flows and Productivity: A Tale of two Reforms

Lorenzo Cappellari, Carlo Dell'Aringa and Marco Leonardi

No 3520, CESifo Working Paper Series from CESifo

Abstract: We investigate the effects of two reforms of temporary employment using panel data on Italian firms. We exploit variation in their implementation across regions and sectors for identification. We find that the reform of apprenticeship contracts increased job turnover and induced the substitution of external staff with firms’ apprentices, with an overall productivity-enhancing effect. The reform of fixed-term contracts instead did not produce the intended results: it induced a substitution of temporary employees in favour of permanent ones and reduced capital intensity, generating productivity losses. We estimate substitution elasticities across types of temporary contracts that are consistent with these interpretations.

Keywords: employment contracts; productivity; institutional changes (search for similar items in EconPapers)
JEL-codes: J24 J41 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms (2012)
Working Paper: Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms (2012)
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