Do Temporary Contracts Affect TFP? Evidence from Spanish Manufacturing Firms

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dc.contributor.author Dolado, Juan José
dc.contributor.author Stucchi, Rodolfo
dc.date.accessioned 2009-01-14T15:38:48Z
dc.date.available 2009-01-14T15:38:48Z
dc.date.issued 2008-11
dc.identifier.bibliographicCitation IZA Discussion Paper, 2008, n. 3832
dc.identifier.uri http://hdl.handle.net/10016/3462
dc.description.abstract This paper evaluates the impact of the widespread use of fixed-term contracts in Spain on firms’ TFP, via its effect on workers’ effort. We propose a simple analytical framework showing that, under plausible conditions, workers’ effort depends positively on their perception (for given level of effort) about firms’ willingness to convert fixed-term contracts into permanent ones. We test this implication using manufacturing firm level data from 1991 to 2005 by means of nonparametric tests of stochastic dominance and parametric multivariate regression approaches. Our main findings are that high conversion rates increase firm’s productivity while high shares of temporary contracts decrease it. Both effects are quantitatively relevant.
dc.format.mimetype text/html
dc.language.iso eng
dc.publisher IZA-Institute for the Study of Labor
dc.relation.ispartofseries Discussion Papers
dc.relation.ispartofseries 3832
dc.subject.other Temporary workers
dc.subject.other Worker's effort
dc.subject.other Firms' TFP
dc.title Do Temporary Contracts Affect TFP? Evidence from Spanish Manufacturing Firms
dc.type workingPaper
dc.relation.publisherversion http://ftp.iza.org/dp3832.pdf
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 closedAccess
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