Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms

By Lorenzo Cappellari, C. Dell’Aringa, M. Leonardi. Social Science Research Network, 2012

187 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, General Health Professions

View Paper: https://www.semanticscholar.org/paper/c48b2d04c020f2c0408fe41e0ad543d5be438e4f

Citations in the corpus

• Explaining the Spread of Temporary Jobs and its Impact on Labor Turnover (2016, unknown): “First, equations (15) and (16) pin down the values of and p: Second, two equations de…ne the median and the mean value of the expected durations of production opportunity.”