Temporary Employment, Demand Volatility and Unions: Firm-Level Evidence

Devicienti, Francesco; Naticchioni, Paolo; Ricci, Andrea

doi:10.2139/ssrn.2608887

Cited by 14 publications

(27 citation statements)

References 35 publications

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“…Abowd et al (1999Abowd et al ( , 2001 were among the first to estimate the contribution of workers and firms' heterogeneity to outcomes in the labor market in linked employer-employee data. 4 In a very recent paper, Devicienti et al (2017) put forward that insiders (unions) may actually call for a rise in temporary work to be able to gain benefit of firm's growth during expansions and to limit membership's loss during downturns. 5 Since 1973, the Italian legislation allowed for individual dismissal only in the presence of misconduct.…”

Section: Discussionmentioning

confidence: 99%

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The Effect of Temporary Agency Workers on Wage of Permanent Employees: Evidence From Linked Employer‐Employee Data

Ordine

Rose

Vella

2017

Labour

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The effect of flexibility at‐the‐margin on wage of permanent employees is evaluated using Italian Linked Employer‐Employee Data for the period 1991–2004. Temporary Agency Workers (TAW) introduced in Italy in 1997 in some specific industries represents a form of flexible job providing a quasi‐experimental setup that can be used to obtain identification by applying difference‐in‐differences. Concerns related to confounding trends are addressed through several robustness and falsification tests. Norms introducing TAW in all sectors in 2000 are also exploited. Results show an increase in permanent employees’ wage in industries involved in the reform. This evidence is consistent with insider‐outsider theories wherein — in a dual labor market — a rise in the share of unprotected employees may spill over upon insiders’ wage.

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Section: Discussionmentioning

confidence: 99%

“… In a very recent paper, Devicienti et al . () put forward that insiders (unions) may actually call for a rise in temporary work to be able to gain benefit of firm's growth during expansions and to limit membership's loss during downturns. …”

mentioning

confidence: 99%

The Effect of Temporary Agency Workers on Wage of Permanent Employees: Evidence From Linked Employer‐Employee Data

Ordine

Rose

Vella

2017

Labour

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“…Several studies have explored the determinants of temporary employment within labour markets, focusing on either the supply or demand factors (Vosko 2000; Fuller and Vosko 2008; Gebel 2010; Noack and Vosko 2011; AHN 2016; Kahn 2016; Devicienti et al 2018; Ojala et al 2018). For example, Vosko (2000) and Noack and Vosko (2011) centre their studies specifically on the supply determinants to show that immigrants, and particularly recent immigrants, are likely to be trapped in precarious employment because of difficulties assimilating into the Canadian labour market, especially with foreign credentials.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

The spatial dimensions of temporary employment in Canada

Ali

Newbold

2020

Canadian Geographies / Géographies canadiennes

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The flexibility of labour markets has entailed a growing use of temporary employment that is associated with limited work arrangements that are often unprotected, poorly paid, and socio‐economically insecure. Yet, the factors that shape the patterning of temporary employment and its types (seasonal, casual, and contract jobs) are relatively unknown in Canada. Using data from Statistics Canada's 2016 Labour Force Survey and the 2016 Census, this paper examines the spatial characteristics influencing the patterns of temporary employment and its types across Canada's census metropolitan areas and census agglomerations (CMAs/CAs). We hypothesize that geographies characterized by a high proportion of immigrants, highly educated populations, and highly unemployed populations have a greater likelihood of workers employed in temporary employment and its types. Our analyses support these hypotheses as population characteristics (CMAs/CAs with a high share of Asian immigrants); labour market characteristics (unemployment rate and prevalence of low income in CMAs/CAs); and human capital characteristics (CMAs/CAs characterized by a large share of populations with a bachelor's degree or higher) contributed more to explaining positive temporary employment outcomes than did occupation characteristics. This study adds valuable insights into the spatial dimensions of labour market insecurity that could be valuable in formulating place‐based policies that address labour market inequalities.

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“…As a related argument, a crucial difference relates to fixed-term contracts with or without training clauses (Devicienti et al, 2018). The first type of contracts, used "to play a screening role for a firm's core-staff needs", is less frequently adopted for senior workers.…”

Section: Automation Temporary Jobs and Related Literaturementioning

confidence: 99%

“…Indeed, the Survey for Adult Skills (PIAAC) shows a lower participation in job related training of older workers in most OECD countries (OECD, 2019: 235-281). It is likely that for senior workers fixed-term contracts are more frequently those without training clauses and they are mainly adopted as a buffer stock to deal with uncertainty (Devicienti et al 2018). However, if automation represents a specific technical progress that makes skilled workers more productive, the demand for low skilled workers may increase by more than the demand for high skill workers, at least under the hypothesis of a Leontief production function (fixed proportions), as argued by Acemoglu and Autor (2012).…”

Section: Automation Temporary Jobs and Related Literaturementioning

confidence: 99%

When Robots Do (Not) Enhance Job Quality: The Role of Innovation Regimes

2020

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Whether robots have a positive or negative impact on job quality and wages depends on the dominant innovation regime in an industry. In an innovation regime with a high cumulativeness of knowledge, i.e. if accumulation of (tacit) knowledge from experience (embodied by workers) is important for innovation, robots enhance the probability that workers will get permanent (other than temporary) contracts and they earn higher wages. The opposite holds for industries with a low-cumulativeness regime when innovation depends mainly on general (and generally available) knowledge. Our results emerge from multi-level estimates of two countries (Italy and Germany), combining sectoral data on robot use with person-level data on properties of workers. Our results imply that previous studies tended to find weak effects of robotization as they did not control for innovation regimes. An implication for European industrial policy is that the hiring of more flexible personnel (and shorter job tenures) that has become popular in the period of supply-side economics is likely to have a negative impact on the productive use of robot technology in industries with a high cumulativeness of knowledge, and less so in low-cumulativeness industries. Unqualified pleas for labour market deregulation can have a problematic impact on technology and should be reconsidered.

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Temporary Employment, Demand Volatility and Unions: Firm-Level Evidence

Cited by 14 publications

References 35 publications

The Effect of Temporary Agency Workers on Wage of Permanent Employees: Evidence From Linked Employer‐Employee Data

The Effect of Temporary Agency Workers on Wage of Permanent Employees: Evidence From Linked Employer‐Employee Data

The spatial dimensions of temporary employment in Canada

When Robots Do (Not) Enhance Job Quality: The Role of Innovation Regimes

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