TEMPORARY EMPLOYMENT, DEMAND VOLATILITY, AND UNIONS: FIRM-LEVEL EVIDENCE

This article investigates the effect of workplace unionization and product market volatility on firms’ propensity to use temporary employment. Using Italian firm-level data, the authors show that volatility has a positive impact on the share of temporary contracts. The baseline estimates for the imp...

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Veröffentlicht in:Industrial & labor relations review 2018-01, Vol.71 (1), p.174-207
Hauptverfasser: DEVICIENTI, FRANCESCO, NATICCHIONI, PAOLO, RICCI, ANDREA
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container_title Industrial & labor relations review
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creator DEVICIENTI, FRANCESCO
NATICCHIONI, PAOLO
RICCI, ANDREA
description This article investigates the effect of workplace unionization and product market volatility on firms’ propensity to use temporary employment. Using Italian firm-level data, the authors show that volatility has a positive impact on the share of temporary contracts. The baseline estimates for the impact of unions are inconclusive, but a clear pattern emerges when a specification including an interaction term with volatility is used. This approach allows a richer characterization of the impact of workplace unionization, which is positive for low levels of volatility and negative for high levels. The authors discuss various direct and indirect mechanisms to explain this novel finding. Furthermore, they find that these effects hold only for cases in which the employer does not provide training for temporary workers, whereas temporary contracts with training provisions are not affected by unions, volatility, and their interplay.
doi_str_mv 10.1177/0019793917697684
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source Access via SAGE; HeinOnline Law Journal Library; Business Source Complete; Sociological Abstracts; JSTOR Archive Collection A-Z Listing
subjects Labor relations
Labor unions
Specification
Temporary employment
Training
Unionization
Volatility
Workplaces
title TEMPORARY EMPLOYMENT, DEMAND VOLATILITY, AND UNIONS: FIRM-LEVEL EVIDENCE
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