The macroeconomic impact of flexible labor contracts, with an application to Spain

Bentolila, Samuel; Saint‐Paul, Gilles

doi:10.1016/0014-2921(92)90043-v

“…One theory, developed by Nunziata and Sta olani (2007), suggests that an increase in the demand for more exible forms of employment is driven by increasing redundancy costs and volatile product demands. This is in line with the model of Bentolila and Saint-Paul (1992), which suggests that the demand for temporary employment is driven by uctuations in product demand.…”

Section: Temporary Employment and Demand Uctuationssupporting

confidence: 89%

Productivity in German Manufacturing Firms: Does Fixed-Term Employment Matter?

Nielen

¹

,

Schiersch

²

2016

Contributions to Management Science

1

0

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. A growing proportion of employees are working under xed-term contracts. This paper empirically analyzes whether this strategy actually improves rm productivity. To this end, a large dataset of German manufacturing rms and various panel data models are used in order to reveal the expected non-linear e ect. Thereby the analysis also takes into account distortions that may result from selection into the use of xed-term employment. The results of the investigation show that there is no signi cant e ect of xedterm employment on labor productivity when controlling for the selection e ect. Terms of use: Documents in EconStor may

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“…16 We next assemble some indirect evidence on the effects of employment protection from firm-level studies, without suggesting that disaggegation is a panacea. For example, Following Nickell (1984), Layard and Nickell (1986), Dolado (1987), and Bentolila and Saint-Paul (1992), t he standard l abor demand model in panel studies can be specified as follows (in logs): 17…”

mentioning

confidence: 99%

“…Bentolila and Saint-Paul (1992), for example, attempt to link the effect of macro and idiosyncratic shocks on the pattern of employment adjustment over the cycle in relation to country-specific features of employment protection. In particular, they look at fixed-term contracts in Spain, a country noted for its extensive use of such temporary employment (more than 30 percent of paid employment).…”

mentioning

confidence: 99%

The economics of employment protection

Addison

¹

,

Teixeira

²

2003

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in The Economics of Employment ProtectionJohn T. Addison Paulino Teixeira The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by the Deutsche Post AG. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor markets, (2) internationalization of labor markets and European integration, (3) the welfare state and labor markets, (4) labor markets in transition, (5) the future of work, (6) project evaluation and (7) general labor economics. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. ABSTRACT The Economics of Employment ProtectionEmpirical investigation of the labor market consequences of employment protection has mushroomed since Lazear's (1990) pioneering study. Having sketched the theoretical background, we chart the course of the modern empirical literature. We focus mainly on dismissals protection, distinguishing between the themes of employment and unemployment development and labor market dynamics proper. Our discussion of employment and unemployment largely deals with the effect of employment protection on levels of these outcome indicators. We distinguish between overall and compositional effects (e.g., by demographic group and type of contract), between developing and industrialized nations, and identify some key control variables. Our discussion of labor market dynamics focuses on the speed of adjustment issue and on gross flows. It also formalizes the link between analyses of levels and changes in variables. At all times potential offsets to the adverse effects of employment protection receive consideration.

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“…Harvey et al, 1986), other studies are based on micro data (see, e.g. Bentolila and Saint-Paul, 1992) or on micro data extended with a current-output variable that is aggregated towards a narrowly-defined industry leve1 (see, e.g. Anderson, 1993).…”

Section: The Labour-demand Modelmentioning

confidence: 99%

On the endogeneity of output in dynamic labour-demand models

Gorter

¹

,

Hassink

²

,

Nijkamp

³

et al. 1997

Empirical Economics

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Abstract:This paper investigates the endogeneity of output in the context of the standard dynamic labour-demand model. Using a panel of Dutch firms, we find that the assumption of endogeneity of output cannot be rejected, so that an adjusted procedure has to be followed in which information on the output expectations of entrepreneurs is used. The estimated effect of the endogenous, current output variable on employment appears to be significantly larger than the effect of the exogenous, expected output variable. The adjustment parameter of employment is however, remarkably robust against distinct specifications for output.

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The macroeconomic impact of flexible labor contracts, with an application to Spain

Cited by 192 publications

References 5 publications

Productivity in German Manufacturing Firms: Does Fixed-Term Employment Matter?

Productivity in German Manufacturing Firms: Does Fixed-Term Employment Matter?

The economics of employment protection

On the endogeneity of output in dynamic labour-demand models

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