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Exuberant Proclivity Towards Non-Standard Employment:Evidence from Linked Employer-Employee Data

Author

Listed:
  • Alessandro Arrighetti

    (University of Parma)

  • Eleonora Bartoloni

    (ISTAT, Regional Office for Lombardy in Milan, University of Parma)

  • Fabio Landini

    (University of Parma, Bocconi University, ICRIO)

  • Chiara Pollio

    (University of Ferrara, EmiliaLab ? Network of Departments of Economics of the Emilia-Romagna Region)

Abstract
In most industrialized countries temporary andnon-standard forms of employment (NSFE)have become a pervasive featureof the labor market. However, at the firm level, the diffusion of NSFE is less uniform than expected: while some firms exhibit high propensity to use NSFE, others make no use of it.Most conventional explanationsof NSFE use (market uncertainty, production regimes, competitive pressure)fail to account for such heterogeneity. In this article the authors develop an alternative explanationthat links the use of NSFE to firm-specific availability of managerial resources: whenever the latter are relatively scarce, firms make larger use of NSFE to reduce coordination and operating costs. Using a linked employer-employeepanel of manufacturing firms from the Emilia-Romagna region (Italy), the authors provide empirical support for this hypothesis. The result is robust to different estimation strategies and controlling for alternative drivers of NSFE use. This novel finding suggests that, the use of NSFE has strong managerial roots: it allows firms to compensate for firm-specific managerial weaknesses.

Suggested Citation

  • Alessandro Arrighetti & Eleonora Bartoloni & Fabio Landini & Chiara Pollio, 2019. "Exuberant Proclivity Towards Non-Standard Employment:Evidence from Linked Employer-Employee Data," Working Papers 1905, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    • Handle: RePEc:urb:wpaper:19_05
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    Cited by:

    1. A. Arrighetti & L. Cattani & F. Landini & A. Lasagni, 2019. "Work Flexibility and Firm Growth," Economics Department Working Papers 2019-EP04, Department of Economics, Parma University (Italy).

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    More about this item

    Keywords

    non-standard employment; managerial resources; span of control; firm heterogeneity.;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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