Damiani, Mirella and Pompei, Fabrizio and Ricci, Andrea (2011): Temporary job protection and productivity growth in EU economies.
Download (611kB) | Preview
The present study examines cross-national and sectoral differences in Total Factor Productivity (TFP) in fourteen European countries and ten sectors from 1995 to 2007. The main aim is to ascertain the role of employment protection of temporary contracts on TFP by estimating their effects with a “difference-in-difference” approach. Results show that deregulation of temporary contracts negatively influences the growth rates of TFP in European economies and that, within sectoral analysis, the role of this liberalization is greater in industries where firms are more used to opening short-term positions. By contrast, in our observation period, restrictions on regular jobs do not cause significant effects on TFP, whereas limited regulation of product markets and higher R&D expenses positively affect efficiency growth.
|Item Type:||MPRA Paper|
|Original Title:||Temporary job protection and productivity growth in EU economies|
|Keywords:||productivity, labor regulation|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth
J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J58 - Public Policy
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Fabrizio Pompei|
|Date Deposited:||19 Mar 2011 19:14|
|Last Modified:||03 Aug 2016 19:25|
Aghion P. and Griffith R. (2005) Competition and Growth, Reconciling Theory and Evidence, Cambridge, MA, MIT Press.
Autor, D.H., Kerr W.R. and Kugler A.D. (2007) Do Employment Protections Reduce Productivity? Evidence from U.S. States. Economic Journal 117: F189-F217.
Bassanini A., Nunziata L. and Venn D. (2009) Job Protection Legislation and Productivity Growth in OECD Countries. Economic Policy 24: 349-402.
Belot, M., J. Boone and van Ours J.C. (2007) Welfare-Improving Employment Protection. Economica 74: 381-396.
Bertola, G. (1990). Job security, employment and wages. European Economic Review 34: 851–86.
Bertola G. (1994) Flexibility, Investment, and Growth. Journal of Monetary Economics 34: 215–238.
Bentolila, S. and G. Bertola (1990) Firing costs and labour demand: how bad is eurosclerosis?.Review of Economic Studies 57: 381–402.
Bertola, G. and R. Rogerson (1997) Institutions and Labor Reallocation. European Economic Review 41: 1147-1171.
Blanchard O. and Landier A., (2002) The Perverse Effects of Partial Labour Market Reforms: Fixed Duration Contracts in France The Economic Journal: F214 -F244.
Boeri T. and Garibaldi P. (2007) Two Tier Reforms Of Employment Protection: A Honeymoon Effect?. The Economic Journal 117: F357–F385.
Boeri T. and Jimeno J. (2005) The effects of employment protection: Learning from variable enforcement. European Economic Review 49: 2057-2077.
Brandt et al. (2005) Assessing The OECD Jobs Strategy: Past Developments And Reforms, Economics Department Working Paper No. 429. Corrado C., Hulten C. and Sichel D.(2009) Intangible Capital and U.S. Economic Growth. Review of Income and Wealth 55: 661–685.
Dew-Becker I. and Gordon R.J. (2008) The Role of Labor Market Changes in the Slowdown of European Productivity Growth. NBER Working Paper 13840.
Engellandt, A. and Riphahn R. (2004) Temporary Contracts and Employee Effort. CEPR Discussion Paper no. 4178.
European Commission (2004) Industrial Relations in Europe. European Commission Directorate-General for Employment and Social Affairs Unit D, Brussels.
EUROSTAT (2010) Science, technology and innovation in Europe. 2010 Edition. Eurostat Statistical Books, Statistical Office of the European Communities, Luxembourg.
Foster, L., Haltiwanger J. and Krizan C.J. (2006) Market Selection, Reallocation and Restructuring in the US Retail Trade Sector in the 1990s, Review of Economics and Statistics, 88: 748-758.
Garibaldi, P. (1998) Job Flow Dynamics and Firing Restrictions. European Economic Review 42: 245-275.
Garibaldi, P. and G. L. Violante (2005) The Employment Effects of Severance Payments with Wage Rigidities. Economic Journal 115: 799-832.
Griffith, R., S. Redding, and J. Van Reenen (2004) Mapping the two faces of R&D: productivity growth in a panel of OECD industries. The Review of Economics and Statistics 86: 883–95.
Hopenhayn H. and Rogerson R. (1993) Job Turnover and Policy Evaluation: A General Equilibrium Analysis, Journal of Political Economy 101: 915-938.
Inklaar R., Timmer M.P. and van Ark B., (2008) Market services productivity across Europe and the US. Economic Policy 53: 139-194.
Nickell S. and Layard J. (1999) Individual Employment Contracts, in Ashenfelter O. and Card D. (eds.), Handbook of Labor Economics, North Holland, Amsterdam
Micco A. and Pages C. (2006) The Economic Effects of Employment Protection: Evidence from International Industry-Level Data. IZA Discussion Paper 2433.
Mortensen, D.T. and Pissarides C.A. (1994) Job creation and job destruction in the theory of unemployment. Review of Economic Studies 61: 397–415.
Mortensen, D.T. and C.A. Pissarides C.A: (1999) Unemployment responses to ‘skill biased’ shocks: the role of labor market policy. Economic Journal 109: 242–265.
Nickell, S.J. and Layard R. (1999) Labour market institutions and economic performance. In Ashenfelter O. and Card D. (eds.) Handbook of Labor Economics, Amsterdam: North-Holland.
Nicoletti, G. and S. Scarpetta (2003) .Regulation, Productivity and Growth: OECD Evidence. Economic Policy36: 9-72.
OECD (2004), Employment Outlook, Paris.
Rajan, R. and Zingales L. (1998) Financial dependence and growth. American Economic Review 88:559–86.
Ricci A. and Waldmann R. (2010) Firm Financed Training and Pareto Improving Firing Taxes, mimeo.
Saint-Paul, G. (2002) Employment Protection, International Specialization, and Innovation. European Economic Review 46: 375-395.
Schivardi F. and Torrini R. (2008) Identifying the effects of firing restrictions through size-contingent differences in regulation. Labour Economics 15: 482-511.
van Ark B., O’Mahony M., Timmer M.P., (2008) The productivity gap between Europe and the United States: trends and causes. Journal of Economic Perspectives 22: 25-44.
Venn D. (2009); Legislation, collective bargaining enforcement: Updating the OECD employment protection indicators, www.oecd.org/els/workingpapers.
Wasmer, E. (2006). General versus specific skills in labor markets with search frictions and firing costs. American Economic Review 96: 811–31.
Available Versions of this Item
- Temporary job protection and productivity growth in EU economies. (deposited 19 Mar 2011 19:14) [Currently Displayed]