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Fixed term contracts and employers' human capital: The role of educational spillovers
Author(s) -
Ghigi Emanuela,
Croce Giuseppe,
Ricci Andrea
Publication year - 2018
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12245
Subject(s) - endogeneity , human capital , economies of agglomeration , labour economics , workforce , instrumental variable , test (biology) , affect (linguistics) , business , economics , microeconomics , market economy , economic growth , econometrics , philosophy , paleontology , linguistics , biology
This paper analyses the role of the employers' education on the spread of temporary contracts. Taking advantage of a unique firm‐level dataset, we test whether the share of fixed term workforce in a firm is affected by the employer's level of education. Furthermore, we test whether knowledge spillovers arising from the agglomeration of university graduate employers affect the incidence of temporary employment in the firms located in the area. In both cases we find a negative effect. Interestingly, only small firms are influenced by the spillovers. The possible problems of endogeneity of the agglomeration variable are coped with an IV approach.