The Impact of Part-Time Work on Firm Total Factor Productivity: Evidence from Italy

43 Pages Posted: 2 Nov 2015

See all articles by Francesco Devicienti

Francesco Devicienti

University of Turin - Collegio Carlo Alberto; University of Turin - Department of Economics and Financial Sciences G. Prato

Elena Grinza

University Of Milan

Davide Vannoni

Faculty of Economics- University of Torino

Abstract

In this paper, we explore the impact of part-time work on firm productivity. Using a large panel data set of Italian corporations' balance sheets for the period 2000-2010, we first estimate the total factor productivity (TFP) of each firm for each year. We use different approaches aimed at solving input simultaneity, including a version of Ackerberg et al.'s (2006) control function approach, which accounts for firm fixed effects. We then match the TFP estimates with rich information on the firms' use of part-time work obtained from survey data and estimate the impact of part-time work on TFP at the firm level.We find that an increase of 1 standard deviation in the part-time share reduces TFP by 2.03%. The results suggest that this harmful effect stems from horizontal rather than vertical part-time arrangements. We also find that firms declaring that they use part-time work to accommodate workers' requests suffer the most. Moreover, we show that the so-called 'flexible' and 'elastic' clauses are successful in reducing the negative impact associated with part-time work.

Keywords: part-time work, horizontal and vertical part-time contracts, flexible and elastic clauses, firm total factor productivity (TFP), semiparametric estimation methods

JEL Classification: L23, L25, J23

Suggested Citation

Devicienti, Francesco and Grinza, Elena and Vannoni, Davide, The Impact of Part-Time Work on Firm Total Factor Productivity: Evidence from Italy. IZA Discussion Paper No. 9463. Available at SSRN: https://ssrn.com/abstract=2684293

Francesco Devicienti (Contact Author)

University of Turin - Collegio Carlo Alberto ( email )

via Real Collegio 30
Moncalieri, Torino 10024
Italy

University of Turin - Department of Economics and Financial Sciences G. Prato ( email )

C. so Unione Sovietica, 218 Bis
Torino, 13820-4020
Italy

Elena Grinza

University Of Milan ( email )

Via Conservatorio 7
Milan, 20122
Italy

Davide Vannoni

Faculty of Economics- University of Torino ( email )

Corso Unione Sovietica 218bis
10134 Torino
Italy
+39+011+7716806 (Phone)
+39+011+6706062 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
64
Abstract Views
370
rank
362,197
PlumX Metrics