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

Alexander Schiersch, Sebastian Nielen

29th Annual Congress of the European Economic Association : EEA 2014
Toulouse, Frankreich, 25.08.2014 - 29.08.2014

Beitrag | PDF 280 KB

Abstract:
A growing proportion of employees are working under fixed-term contracts. This paper empirically analyzes whether this strategy actually improves firm productivity. To this end, a largedata set of German manufacturing firms and various panel data models are used in order to reveal the expected non-linear effect. Thereby the analysis also takes into account distortions that may result from selection into the use of fixed-term employment. The results of the investigation show that there is no significant effect of fixed-term employment on labor productivity when taking into account potential selection effects.

Abstract

A growing proportion of employees are working under fixed-term contracts. This paper empirically analyzes whether this strategy actually improves firm productivity. To this end, a largedata set of German manufacturing firms and various panel data models are used in order to reveal the expected non-linear effect. Thereby the analysis also takes into account distortions that may result from selection into the use of fixed-term employment. The results of the investigation show that there is no significant effect of fixed-term employment on labor productivity when taking into account potential selection effects.

Alexander Schiersch

Wissenschaftlicher Mitarbeiter in der Abteilung Unternehmen und Märkte

Themen: Arbeit und Beschäftigung

JEL-Classification: D24;L23;L60
Keywords: fixed-term employment, labor productivity, manufacturing
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