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Cross-Sectors Skill Intensity, Productivity and Temporary Employment

Domenico Lisi () and Miguel Malo ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this article, we study the impact of temporary employment (TE) on productivity and, in particular, we wonder if it differs according to sectors skill intensity. Our data set is an ad-hoc industry-level panel of European countries, which allows to deal with endogeneity problems. Our main result is that TE has a negative impact on productivity, but it is more damaging in skilled sectors. While an increase of 10 percentage points of the share of TE in skilled sectors decrease labour productivity growth about 1-1.5%, in unskilled sectors the decrease would be 0.5-0.8%. This result is robust to changes in the skill intensity index and in the sample composition. We also discuss policy implications of this result for labour market regulation.

Keywords: Labour productivity; Temporary employment; Skill intensity; Differential effect. (search for similar items in EconPapers)
JEL-codes: J24 J41 O47 (search for similar items in EconPapers)
Date: 2014-06-05
New Economics Papers: this item is included in nep-eff, nep-eur, nep-lab, nep-lma and nep-tid
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