The present study examines national and sectoral differences in Total Factor Productivity (TFP) in fourteen European countries and ten sectors from 1995 to 2007. The main aim is to ascertain the influence of employment protection for temporary contracts on TFP by estimating its effects using a “difference-in-difference” approach. The results indicate that the deregulation of temporary contracts negatively influences TFP growth in European economies and that, within the sectoral analysis, the influence of this liberalisation is greater in industries in which firms are more used to opening short-term positions. Furthermore, we find that liberalising temporary employment discourages training and the acquisition of firm-specific skills.

Temporary employment protection and productivity growth in EU economies

DAMIANI, Mirella;POMPEI, Fabrizio
;
RICCI, ANDREA
2016

Abstract

The present study examines national and sectoral differences in Total Factor Productivity (TFP) in fourteen European countries and ten sectors from 1995 to 2007. The main aim is to ascertain the influence of employment protection for temporary contracts on TFP by estimating its effects using a “difference-in-difference” approach. The results indicate that the deregulation of temporary contracts negatively influences TFP growth in European economies and that, within the sectoral analysis, the influence of this liberalisation is greater in industries in which firms are more used to opening short-term positions. Furthermore, we find that liberalising temporary employment discourages training and the acquisition of firm-specific skills.
2016
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11391/1307900
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