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Exuberant Proclivity Towards Non-Standard Employment:Evidence from Linked Employer-Employee Data

Alessandro Arrighetti (), Eleonora Bartoloni, Fabio Landini and Chiara Pollio
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Eleonora Bartoloni: ISTAT, Regional Office for Lombardy in Milan, University of Parma
Fabio Landini: University of Parma, Bocconi University, ICRIO
Chiara Pollio: University of Ferrara, EmiliaLab ? Network of Departments of Economics of the Emilia-Romagna Region

No 1905, Working Papers from University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini

Abstract: In most industrialized countries temporary andnon-standard forms of employment (NSFE)have become a pervasive featureof the labor market. However, at the firm level, the diffusion of NSFE is less uniform than expected: while some firms exhibit high propensity to use NSFE, others make no use of it.Most conventional explanationsof NSFE use (market uncertainty, production regimes, competitive pressure)fail to account for such heterogeneity. In this article the authors develop an alternative explanationthat links the use of NSFE to firm-specific availability of managerial resources: whenever the latter are relatively scarce, firms make larger use of NSFE to reduce coordination and operating costs. Using a linked employer-employeepanel of manufacturing firms from the Emilia-Romagna region (Italy), the authors provide empirical support for this hypothesis. The result is robust to different estimation strategies and controlling for alternative drivers of NSFE use. This novel finding suggests that, the use of NSFE has strong managerial roots: it allows firms to compensate for firm-specific managerial weaknesses.

Keywords: non-standard employment; managerial resources; span of control; firm heterogeneity. (search for similar items in EconPapers)
JEL-codes: D22 L23 M51 M52 J41 J23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-lma and nep-tid
Date: 2019, Revised 2019
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