Temporary Employment, Job Flows and Productivity

A Tale of Two Reforms

Datos Bibliográficos

ID9717587
AutoresLorenzo Cappellari (0000-0001-6791-3494, Catholic University of Milan and IZA), Carlo Dell’aringa (Università Cattolica del Sacro Cuore), Marco Leonardi (0000-0002-7989-1162, University of Milan and IZA)
Año2012
Volumen122
Número562
PáginasF188-F215
Fecha de publicación2012-08-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2012.02535.x
OpenAlexW2168545042
IdiomaEN
Citas recibidas24
Referencias citadas29

We investigate the effects of two reforms of temporary employment using panel data on Italian firms. We exploit variation in their implementation across regions and sectors for identification. Our results show that the reform of apprenticeship contracts increased job turnover and induced the substitution of external staff with firms’ apprentices, with an overall productivity-enhancing effect. The reform of fixed-term contracts instead did not produce the intended results: it induced a substitution of temporary employees in favour of external staff and reduced capital intensity, generating productivity losses. We estimate substitution elasticities across various types of temporary contracts that are consistent with this interpretation

Business · Demographic economics · Economics · Labour economics · Macroeconomics · Productivity · Employment and Welfare Studies · Firm Innovation and Growth · Labor market dynamics and wage inequality