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Short notice, big difference? The effect of temporary employment on firm competitiveness across sectors

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  • Romina Giuliano
  • Stephan Kampelmann
  • Benoit Mahy
  • François Rycx

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.

Suggested Citation

  • Romina Giuliano & Stephan Kampelmann & Benoit Mahy & François Rycx, 2017. "Short notice, big difference? The effect of temporary employment on firm competitiveness across sectors," Working Papers CEB 17-008, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/247060
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    8. 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).
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    More about this item

    Keywords

    Fixed-term contracts; productivity; wages; profits; linked panel data; sectors;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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