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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)
New Economics Papers: this item is included in nep-eff, nep-eur and nep-lma
Date: 2017-02
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Published in: British Journal of Industrial Relations, 2017, 55 (2), 421-449

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