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The impact of part-time work on firm productivity: evidence from Italy

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Listed:
  • Francesco Devicienti
  • Elena Grinza
  • Davide Vannoni

Abstract

In this article, we explore the impact of part-time work on firm productivity. Using a large panel data set of Italian corporations for the period 2000–2010, we first estimate firms’ yearly productivity by removing the output contribution of the labor and capital inputs aggregates. We use different approaches aimed at solving input simultaneity, including a version of Ackerberg et al.’s (2015), control function approach, that also accounts for firm fixed effects. We then match the productivity estimates with rich information on the firms’ use of part-time work obtained from survey data for the years 2005, 2007, and 2010 and estimate the impact of part-time work on productivity. We find that a 10% increase in the share of part-timers reduces productivity by 1.45%. The results suggest that this harmful effect stems from horizontal rather than vertical part-time arrangements. We also find that firms declaring to use part-time work to accommodate workers’ requests suffer the most. Moreover, we show that the so-called “flexible” and “elastic” clauses are successful in cushioning the negative impact associated with part-time work.

Suggested Citation

  • Francesco Devicienti & Elena Grinza & Davide Vannoni, 2018. "The impact of part-time work on firm productivity: evidence from Italy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 321-347.
    • Handle: RePEc:oup:indcch:v:27:y:2018:i:2:p:321-347.
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    File URL: http://hdl.handle.net/10.1093/icc/dtx037
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    Citations

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    Cited by:

    1. Mario Benassi & Elena Grinza & Francesco Rentocchini & Laura Rondi, 2022. "Patenting in 4IR technologies and firm performance [Robots and jobs: evidence from US labor markets]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(1), pages 112-136.
    2. Pauline Carry, 2022. "The Effects of the Legal Minimum Working Time on Workers, Firms and the Labor Market," SciencePo Working papers Main hal-04067393, HAL.
    3. Devicienti, Francesco & Grinza, Elena & Vannoni, Davide, 2020. "Why do firms (dis)like part-time contracts?," Labour Economics, Elsevier, vol. 65(C).
    4. Mario Benassi & Elena Grinza & Francesco Rentocchini & Laura Rondi, 2020. "Going Revolutionary: The Impact of 4IR Technology Development on Firm Performance," SPRU Working Paper Series 2020-08, SPRU - Science Policy Research Unit, University of Sussex Business School.
    5. Boltz, Marie & Cockx, Bart & Diaz, Ana Maria & Salas, Luz Magdalena, 2020. "How does working-time flexibility affect workers’ productivity in a routine job?," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    6. Nicola Gagliardi & Elena Grinza & François Rycx, 2021. "Can You Teach an Old Dog New Tricks? New Evidence on the Impact of Tenure on Productivity," Working Papers CEB 21-007, ULB -- Universite Libre de Bruxelles.
    7. Renata Bottazzi & Serena Trucchi & Matthew Wakefield, 2021. "Labour supply responses to financial wealth shocks: evidence from Italy," Fiscal Studies, John Wiley & Sons, vol. 42(2), pages 291-317, June.
    8. Serena Trucchi & Elsa Fornero & Mariacristina Rossi, 2018. "Retirement rigidities and the gap between effective and desired labour supply by older workers," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-19, December.
    9. Cambini, Carlo & Grinza, Elena & Sabatino, Lorien, 2023. "Ultra-fast broadband access and productivity: Evidence from Italian firms," International Journal of Industrial Organization, Elsevier, vol. 86(C).
    10. Benoît Mahy & François Rycx & Guillaume Vermeylen & Mélanie Volral, 2022. "Productivity and wage effects of firm‐level upstreamness: Evidence from Belgian linked panel data," The World Economy, Wiley Blackwell, vol. 45(7), pages 2222-2250, July.
    11. Benoît Mahy & François Rycx & Guillaume Vermeylen & Mélanie Volral, 2018. "Productivity, wages and profits: Does firms’ position in the value chain matter?," Working Paper Research 358, National Bank of Belgium.
    12. Elena Grinza & François Rycx, 2020. "The Impact of Sickness Absenteeism on Firm Productivity: New Evidence from Belgian Matched Employer–Employee Panel Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(1), pages 150-194, January.
    13. Grinza, Elena & Rycx, François, 2018. "The Impact of Sickness Absenteeism on Productivity: New Evidence from Belgian Matched Panel Data," IZA Discussion Papers 11543, Institute of Labor Economics (IZA).
    14. Elena Grinza & Stephan Kampelmann & François Rycx, 2020. "L’union fait la force? Evidence for wage discrimination in firms with high diversity," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(2), pages 181-211, June.
    15. Fanfani, Bernardo, 2022. "Tastes for discrimination in monopsonistic labour markets," Labour Economics, Elsevier, vol. 75(C).
    16. Marie Boltz & Bart Cockx & Ana Maria Diaz & Luz Magdalena Salas, 2023. "How does working‐time flexibility affect workers' productivity in a routine job? Evidence from a field experiment," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 159-187, March.
    17. Theresa Markefke & Rebekka Rehm, 2020. "Macroeconomic Determinants of Involuntary Part-Time Employment in Germany," Working Paper Series in Economics 103, University of Cologne, Department of Economics.
    18. Giovanni Dosi & Dario Guarascio & Andrea Ricci & Maria Enrica Virgillito, 2021. "Neodualism in the Italian business firms: training, organizational capabilities, and productivity distributions," Small Business Economics, Springer, vol. 57(1), pages 167-189, June.
    19. Pauline Carry, 2022. "The Effects of the Legal Minimum Working Time on Workers, Firms and the Labor Market," Working Papers hal-04067393, HAL.
    20. Nicola Gagliardi & Elena Grinza & François Rycx, 2023. "Workers’ tenure and firm productivity: New evidence from matched employer‐employee panel data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(1), pages 3-33, January.

    More about this item

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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