RT Journal Article
T1 Does dual employment protection affect TFP? Evidence from Spanish manufacturing firms
A1 Dolado, Juan José
A1 Ortigueira Silva, Salvador
A1 Stucchi, Rodolfo Mario
AB This paper analyzes how changes in the firing-costs gap between permanent and temporary workers affect firms¿ TFP in a dual labour market. We argue that, under plausible conditions, firms¿ temp-to-perm conversion rates go down when this gap increases. Temporary workers respond to lower conversion rates by exerting less effort, while firms react by providing less paid-for training. Both channels lead to a decline in TFP. We test these implications in a large panel of Spanish manufacturing firms from 1991 to 2005, looking at the effects of three labour market reforms which entailed substantial changes in the firing-costs gap. Our empirical findings provide some support for the above-mentioned mechanism. © 2016, The Author(s).
PB Springer
SN 1869-4187
YR 2016
FD 2016-01-01
LK https://hdl.handle.net/10016/38875
UL https://hdl.handle.net/10016/38875
LA eng
DS e-Archivo
RD 17 jul. 2024