Labour shares, employment protection and unions in European economies

Mirella Damiani, Fabrizio Pompei and Ricci Andrea

MPRA Paper from University Library of Munich, Germany

Abstract: We analyse the role that the liberalization of temporary contracts plays in labour share in some EU countries. The empirical analysis mainly relies on the EUKLEMS database and applies a difference-in-difference approach. Our results, focused on periods of different length (1996–2007 and 1996–2013), show that legislative innovations that favour the extensive use of temporary contracts negatively affect the labour share, likely because they lower employees’ average compensations. We hypothesize that these labour reforms, which lead to enduring skill deficits, thus failing to halt the erosion of the labour share of previous decades.

Keywords: factor income distribution; labour regulation (search for similar items in EconPapers)
JEL-codes: E25 J50 (search for similar items in EconPapers)
Date: 2018-06
New Economics Papers: this item is included in nep-eec and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:91300

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