Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/161202 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 10579
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper is one of the first to examine how the use of fixed-term employment contracts (FTCs) affects firm competitiveness (i.e. productivity, wages and profits) while controlling for key econometric issues such as time-invariant unobserved workplace characteristics, endogeneity and state dependence. We apply dynamic panel data estimation techniques to detailed Belgian linked employer-employee data covering all years from 1999 to 2010. Results show that the effects of FTCs on firm competitiveness vary across sectors: while temporary employment is found to enhance productivity and profits in (labour-intensive) services, this is not the case in manufacturing and construction.
Subjects: 
fixed-term contracts
productivity
wages
profits
sectors
linked panel data
JEL: 
D24
J24
J31
M12
Document Type: 
Working Paper

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