Uncertainty, Flexible Labour Relations and R&D

30 Pages Posted: 4 Jan 2017

See all articles by Marco Di Cintio

Marco Di Cintio

University of Salento - Department of Economics and Mathematics and Statistics

Emanuele Grassi

University of Salento - Dipartimento di Scienze dell'Economia

Date Written: February 2017

Abstract

This paper examines the effects of uncertainty and flexible labour contracts on the Research and Development (R&D) intensity. Using a panel of Italian manufacturing firms, we find a hump‐shaped relationship between workforce flexibility and R&D intensity. Moreover, as predicted by the real options theory, our results suggest that product market uncertainty reduces R&D efforts and that flexible labour contracts countervail the adverse effect of uncertainty on R&D.

Suggested Citation

Di Cintio, Marco and Grassi, Emanuele, Uncertainty, Flexible Labour Relations and R&D (February 2017). Metroeconomica, Vol. 68, Issue 1, pp. 91-120, 2017, Available at SSRN: https://ssrn.com/abstract=2893378 or http://dx.doi.org/10.1111/meca.12127

Marco Di Cintio (Contact Author)

University of Salento - Department of Economics and Mathematics and Statistics ( email )

Piazza Tancredi, n7
Lecce, 73100
Italy

Emanuele Grassi

University of Salento - Dipartimento di Scienze dell'Economia ( email )

via per Monteroni
Lecce, 73100
Italy

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