Abstract
Purpose - We aim to elucidate the relationship between fixed-term employment and firm productivity by examining workers' skills and considering how firm-level conversion rates influence this relationship. Design/methodology/approach - We use longitudinal employer-employee data between 2011 and 2017 in the Netherlands to estimate a nonlinear regression derived from a production function proposed by Addessi (2014) and Castellani et al . (2020). Findings - The contribution of fixed-term contracts to firm-level productivity is less than that of permanent contracts. However, this contribution is greater when firms exhibit a high conversion rate from fixed-term to permanent positions. The effect of the conversion rate is more substantial for high-skilled fixed-term workers than for low-skilled ones. Originality/value - Our results suggest the extent to which firms benefit from fixed-term contracts when these are used for screening high-skilled workers for permanent employment.
Original language | English |
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Pages (from-to) | 144-161 |
Number of pages | 18 |
Journal | International Journal of Manpower |
Volume | 45 |
Issue number | 10 |
DOIs | |
Publication status | Published - 5 Nov 2024 |
Keywords
- Productivity
- Firm-level TFP
- Labour contracts
- Screening
- Conversion rate
- Worker skills
- Panel data
- LABOR-MARKET REFORM
- TEMPORARY EMPLOYMENT
- FLEXIBILITY
- PERFORMANCE
- CONSEQUENCES
- INNOVATION
- DYNAMICS
- CREATION
- LEVEL
- JOBS