Temporary job protection and productivity growth in EU economies

Mirella Damiani, Fabrizio Pompei and Andrea Ricci

No 87/2011, Quaderni del Dipartimento di Economia, Finanza e Statistica from Università di Perugia, Dipartimento Economia

Abstract: The present study examines cross-national and sectoral differences in Total Factor Productivity (TFP) in fourteen European countries and ten sectors from 1995 to 2007. The main aim is to ascertain the role of employment protection of temporary contracts on TFP by estimating their effects with a “difference-in-difference” approach. Results show that deregulation of temporary contracts negatively influences the growth rates of TFP in European economies and that, within sectoral analysis, the role of this liberalisation is greater in industries where firms are more used to opening short-term positions. By contrast, in our observation period, restrictions on regular jobs do not cause significant effects on TFP, whereas limited regulation of product markets and higher R&D expenses positively affect efficiency growth.

Keywords: productivity; labour regulation. (search for similar items in EconPapers)
JEL-codes: J58 O40 O43 O47 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2011-03-23
New Economics Papers: this item is included in nep-eff, nep-lab and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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