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Journal of Productivity Analysis

, Volume 34, Issue 3, pp 199–212 | Cite as

Temporary contracts and labour productivity in Spain: a sectoral analysis

  • Bienvenido Ortega
  • Andrés J. Marchante
Article

Abstract

This paper analyses the impact on sectoral labour productivity growth caused by the increase in the use of temporary employment contracts in Spain over the period 1987–2000. With this aim, we estimate a production function model in which effective labour is represented by the shares of permanent, temporary and self-employed workers. Results suggest that productivity growth has been slowed down by the use of temporary contracts for regular jobs and that this has not been affected by compositional changes in activity over the period. However, this effect has only been detected in the manufacturing and energy sector, in contrast to low-technology low-human capital sectors like construction and hospitality.

Keywords

Labour productivity Labour market segmentation Aggregate production function Sectoral analysis Temporary contracts 

JEL Classifications

J24 O47 

Notes

Acknowledgements

The authors wish to thank the editor, an associate editor and the referees for valuable comments that helped to substantially improve the paper. Financial support from the Centro de Estudios Andaluces (CentrA) is also gratefully acknowledged (grant ECOD1.05/036).

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Universidad de MálagaMalagaSpain

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