The Impact of Temporary Employment on Labour Productivity: Evidence from an Industry-Level Panel of EU Countries

In recent years the availability of new industry-level data allowed to evaluate the impact of labour market policies more consistently than previous standard cross-country studies. In this paper an industry-level panel is exploited to evaluate the impact of less stringent Employment Protection Legislation (EPL) for temporary employment (TE) in EU countries. A reduced form model is estimated to identify the overall effect on labour productivity growth. The advantage of using industry-level data is fourfold. First, as in standard cross-country studies, the cross-country variation of EPL is still exploited. Second, in contrast with the cross-country analysis, the specification allows us to control for unobserved fixed effects, potentially correlated with the level of EPL. Third, as the previous literature emphasised, the within-industry “composition effect” appears to be negligible, allowing us to identify the “independent effect” of TE. Fourth, to the extent that events in a single industry are not able alone to affect the policy in a country, the specification is less subject to the simultaneity problem between variable of interest and policy. The theoretical literature on TE has not established a clear prediction on the sign of the effect, existing different convincing reasons for both directions. Thus, the results of the analysis have potentially important policy implications. Our finding is that the introduction of temporary contracts has a negative, even if small in magnitude, effect on labour productivity growth.labour productivity; temporary employment; EPL; difference-in-differences

The impact of EPL on labour productivity in a general equilibrium matching model

The standard analysis of the impact of EPL on labour market outcomes concentrates mainly on unemployment, disregarding the possible effect on productivity. In this paper we make (a component of) labour productivity endogenous and analyze how the presence of a stringent protection legislation affects labour market in an equilibrium matching model with endogenous job destruction. Indeed, considering labour productivity an endogenous could be important not only in the case of EPL, but also for all kind of personnel policy evaluation. In this framework high labour productivity on one hand is costly in terms of effort, on the other hand is beneficial in terms of lower job destruction. We find that high firing costs partially substitute high labour productivity in reducing job destruction and this, consequently, brings down the optimal level of productivity. Moreover, the impact of EPL on unemployment is ambiguous but numerical exercises show unambiguously how higher firing restrictions reduce different measures of aggregate welfare. To some extent, the clear emergence of these results is full of policy implication and, indeed, rationalizes the recent empirical evidence on the impact of EPL.Employment protection; Endogenous labour productivity; Job destruction

Analysis of employment protection legislation: a model with endogenous labour productivity

This paper analyzes the effects of the different Employment Protection Legislation on the workers choices on effort. The different EPL are modelled through an easy theoretical pattern, characterized by endogenous labour productivity. In particular, it is analyzed how the labour productivity is influenced by the incentives that the different EPL give workers. The model outcomes highlight that the recent reforms produce only a positive temporary effect on the unemployment level, as emphasized by the empirical evidence. Finally, this paper analyzes a new contractual regime in order to see if it could offer in theory a better solution in term of structural employment respect to known standard regimes

Analysis of employment protection legislation: a model with endogenous labour productivity

This paper analyzes the effects of the different Employment Protection Legislation on the workers choices on effort. The different EPL are modelled through an easy theoretical pattern, characterized by endogenous labour productivity. In particular, it is analyzed how the labour productivity is influenced by the incentives that the different EPL give workers. The model outcomes highlight that the recent reforms produce only a positive temporary effect on the unemployment level, as emphasized by the empirical evidence. Finally, this paper analyzes a new contractual regime in order to see if it could offer in theory a better solution in term of structural employment respect to known standard regimes

SMADS-Mediate Molecular Mechanisms in Sjögren's Syndrome

There is considerable interest in delineating the molecular mechanisms of action of transforming growth factor-beta (TGF-beta), considered as central player in a plethora of human conditions, including cancer, fibrosis and autoimmune disease. TGF-beta elicits its biological effects through membrane bound serine/threonine kinase receptors which transmit their signals via downstream signalling molecules, SMADs, which regulate the transcription of target genes in collaboration with various co-activators and co-repressors. Until now, therapeutic strategy for primary Sjogren's syndrome (pSS) has been focused on inflammation, but, recently, the involvement of TGF-beta/SMADs signalling has been demonstrated in pSS salivary glands (SGs) as mediator of the epithelial-mesenchymal transition (EMT) activation. Although EMT seems to cause pSS SG fibrosis, TGF-beta family members have ambiguous effects on the function of pSS SGs. Based on these premises, this review highlights recent advances in unravelling the molecular basis for the multi-faceted functions of TGF-beta in pSS that are dictated by orchestrations of SMADs, and describe TGF-beta/SMADs value as both disease markers and/or therapeutic target for pSS

Impacto de la legislación de protección del empleo sobre la productividad laboral en un modelo combinado de equilibrio general

The standard analysis of the impact of EPL on labour market outcomes concentrates mainly on unemployment and job flows, disregarding possible effects on labour productivity.In this paper we make (a component of) labour productivity endogenous and analyze how thepresence of a stringent protection legislation affects labour market in an equilibrium matching model with endogenous job destruction. In particular, in our study we imagine that an employed worker has to exert effort to produce and this generates disutility. Therefore, in this framework high labour productivity on one hand is costly for a worker in terms of disutility, and on the other hand might be beneficial in terms of lower job destruction. We find that high firing costs partially substitute high labour productivity in reducing job destruction and this, consequently, brings down the optimal level of productivity. Furthermore, the impact of EPL on unemployment is ambiguous but numerical exercises show unambiguously how higher firing restrictions reduce different measures of aggregate welfare. To some extent, the clear emergence of these results leads to interesting policy implications and, indeed, rationalizes the recent empirical evidenceon the impact of EPLEl análisis estándar del impacto de la EPL sobre los resultados en el mercado laboral se concentra sobre todo en el paro y en los flujos de trabajo y paro. En este documento hacemos endógena (un componente de) la productividad laboral y analizamos cómo afecta al mercado laboral la presencia de una legislación de protección rigurosa en un modelo combinado de equilibrio apropiado con la destrucción de empleo endógena. Concretamente, en nuestro estudio imaginamos que un trabajador por cuenta ajena debe hacer esfuerzos para producir y esto genera desutilidad. Por lo tanto, dentro de este marco, para un trabajador la alta empleo productividad laboral es costosa en términos de desutilidad, pero también puede ser beneficiosa por lo que se refiere a la menor destrucción de empleo. Observamos que el alto coste del despido sustituye parcialmente la alta productividad laboral al reducir la destrucción de empleo y, en consecuencia, esto reduce el nivel óptimo de productividad. Además, el impacto de la EPL sobre el desempleo es ambiguo, pero los cálculos numéricos muestran de manera evidente cómo las mayores restricciones del despido reducen diferentes medidas de bienestar global. En cierta medida, la aparición evidente de estos resultados conlleva implicaciones normativas interesantes y, lo que es más, racionaliza la evidencia empírica reciente sobre el impacto de la EP

The role of the epithelial-to-mesenchymal transition (EMT) in diseases of the salivary glands

The link between inflammatory microenvironment and cancer emerged in the last years as a decisive factor in the induction of the pathological epithelial-mesenchymal transition (EMT). The EMT induces changes of cell states converting the epithelial cells to mesenchymal cells when this program is fully executed and EMT has emerged as a central driver of tumor malignancy. Cellular pathways activated by chronic inflammation brought about by chronic infections, by immune-mediated diseases, or by dysregulated wound healing at sites of repetitive tissue injury, constitute risk factors or initial cell transformation and for cancer progression. EMT and its intermediate states have recently been identified as crucial inducers of organ fibrosis, inflammation and tumor progression. In this review, we discuss the current state-of-the-art and latest findings regarding the link between EMT, inflammation, fibrosis and cancer, highlighting the most recent data on EMT-dependent tissue fibrosis during chronic inflammatory salivary glands conditions and salivary glands tumors

Understanding the Complexity of Sjögren's Syndrome: Remarkable Progress in Elucidating NF-κB Mechanisms

Sjögren's syndrome (SS) is a systemic autoimmune inflammatory disease with a poorly defined aetiology, which targets exocrine glands (particularly salivary and lachrymal glands), affecting the secretory function. Patients suffering from SS exhibit persistent xerostomia and keratoconjunctivitis sicca. It is now widely acknowledged that a chronic grade of inflammation plays a central role in the initiation, progression, and development of SS. Consistent with its key role in organizing inflammatory responses, numerous recent studies have shown involvement of the transcription factor nuclear factor κ (kappa)-light-chain-enhancer of activated B cells (NF-κB) in the development of this disease. Therefore, chronic inflammation is considered as a critical factor in the disease aetiology, offering hope for the development of new drugs for treatment. The purpose of this review is to describe the current knowledge about the NF-κB-mediated molecular events implicated in the pathogenesis of SS

The Impact of Temporary Employment on Labour Productivity: Evidence from an Industry-Level Panel of EU Countries

In recent years the availability of new industry-level data allowed to evaluate the impact of labour market policies more consistently than previous standard cross-country studies. In this paper an industry-level panel is exploited to evaluate the impact of less stringent Employment Protection Legislation (EPL) for temporary employment (TE) in EU countries. A reduced form model is estimated to identify the overall effect on labour productivity growth. The advantage of using industry-level data is fourfold. First, as in standard cross-country studies, the cross-country variation of EPL is still exploited. Second, in contrast with the cross-country analysis, the specification allows us to control for unobserved fixed effects, potentially correlated with the level of EPL. Third, as the previous literature emphasised, the within-industry “composition effect” appears to be negligible, allowing us to identify the “independent effect” of TE. Fourth, to the extent that events in a single industry are not able alone to affect the policy in a country, the specification is less subject to the simultaneity problem between variable of interest and policy. The theoretical literature on TE has not established a clear prediction on the sign of the effect, existing different convincing reasons for both directions. Thus, the results of the analysis have potentially important policy implications. Our finding is that the introduction of temporary contracts has a negative, even if small in magnitude, effect on labour productivity growth

Hospital Quality Interdependence in a Competitive Institutional Environment: Evidence from Italy

In this paper we explore the geographical scope of hospital competition on quality, using Italian data on over 207,000 patients admitted to 174 hospitals located in the Lombardy region in the years 2008–2014. We propose an economic framework that incorporates both local and global forms of quality competition among hospitals, the latter emerging from periodically released hospital performance rankings. Under this framework, we derive the hospital reaction functions and, accordingly, we characterize the structure of interdependence among hospital qualities. We employ recent methods from the graphical modelling literature to estimate the set of local rivals for each hospital, as well as the degree of global interdependence among hospitals. Consistently with our micro-founded framework, our results show a significant positive degree of short- and long-range dependence, suggesting the existence of forms of local and global competition amongst hospitals with relevant implications for health care policy