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Title:Temporary employment, job flows and productivity: A tale of two reforms PDF Logo
Authors:Cappellari, Lorenzo
Dell'Aringa, Carlo
Leonardi, Marco
Issue Date:2011
Series/Report no.:CESifo working paper: Labour Markets 3520
Abstract: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. We find 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 permanent ones and reduced capital intensity, generating productivity losses. We estimate substitution elasticities across types of temporary contracts that are consistent with these interpretations.
Subjects:employment contracts
productivity
institutional changes
JEL:J24
J41
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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