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The Productivity effect of permanent and temporary labor contracts in the Italian manufacturing sector

Addessi, William (2014) The Productivity effect of permanent and temporary labor contracts in the Italian manufacturing sector. Economic modelling, Vol. 36 , p. 666-672. ISSN 0264-9993. eISSN 1873-6122. Article.

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DOI: 10.1016/j.econmod.2013.09.054

Abstract

This paper studies the effect of permanent and temporary labor contracts on both labor-augmenting and TFP-augmenting technological factors using a panel dataset of Italian manufacturing firms. The empirical analysis applies a structural approach in which firm TFP follows a controlled Markov process that is affected by the relative use of labor contracts, and labor services are perfect substitutes but with different labor-augmenting factors. The empirical results show that when including labor-contract composition in the TFP process: i) the difference between permanent and temporary contracts in the labor-augmenting productivity factor is not significant and ii) the incidence of permanent contracts in total contracts has a positive effect on TFP dynamics.

Item Type:Article
ID Code:10098
Status:Published
Refereed:Yes
Uncontrolled Keywords:Total factor productivity, labor productivity, permanent and temporary labor contracts
Subjects:Area 13 - Scienze economiche e statistiche > SECS-P/01 Economia politica
Divisions:001 Università di Sassari > 01-a Nuovi Dipartimenti dal 2012 > Scienze economiche e aziendali
Publisher:Elsevier
ISSN:0264-9993
eISSN:1873-6122
Deposited On:15 Sep 2014 16:27

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