Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58756
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 6211
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
The aim of this study is to evaluate employees' productivity in relation to their contract status. This study uses (a) survey data collected among manufacturing sector firms, having more than 15 employees, in Cameroon between April and May 2006 and (b) information issued by the National Institute of Statistics. Information collected concerned 45 firms spanning the period 2003 to 2005. This study uses the stochastic production frontier, distinguishing employees holding fixed-term contract (FTC) from employees that do not have fixed-term contracts (indefinite-term contract (ITC)). Results are estimated in 2 stages. First, we evaluate the determinants of the utilisation of FTC workers and second, we estimate the level of efficiency and productivity of two types of workers. Empirical results indicate that employees holding FTC are twice more productive than those holding ITC. Likewise, parameters indicating returns to scale are 1.3. This parameter, though not significant, is greater than one indicating constant returns to scale in the firm production function.
Subjects: 
labour contract
fixed-term contract
indefinite-term contract
production frontier
JEL: 
J41
J82
L25
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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