Does dual employment protection affect TFP? Evidence from Spanish manufacturing firms

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dc.contributor.author Dolado, Juan José
dc.contributor.author Ortigueira, Salvador
dc.contributor.author Stucchi, Rodolfo
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2011-12-20T17:45:13Z
dc.date.available 2011-12-20T17:45:13Z
dc.date.issued 2011-12
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/12796
dc.description.abstract This paper analyzes the effect of having a large gap in firing costs between permanent and temporary workers in a dual labour market on TFP development at the firm level. We propose a simple model showing that, under plausible conditions, both temporary workers’ effort and firms’ temp-to-perm conversion rates decrease when that gap increases. We test this implication by means of a panel of Spanish manufacturing firms from 1991 to 2005, using as natural experiments some labour market reforms entailing substantial changes in this gap. Our main empirical finding is that reforms leading to a lower gap enhanced conversion rates, which in turn increased firms’ TFP, and conversely for reforms that increased the gap.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics
dc.relation.ispartofseries 11-37
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Firms' TFP
dc.subject.other Workers' effort
dc.subject.other Temporary workers
dc.subject.other Firing costs
dc.title Does dual employment protection affect TFP? Evidence from Spanish manufacturing firms
dc.type workingPaper
dc.subject.jel C14
dc.subject.jel C52
dc.subject.jel D24
dc.subject.jel J24
dc.subject.jel J41
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.type.version submitedVersion
dc.identifier.uxxi DT/0000000881
dc.identifier.repec we1137
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