Impact of part-time and fixed-term labour contracts on productivity in Tourism Destinations. The case of the accommodation industry in the Balearic Islands

Abstract

[eng] Part-time and fixed-term contracts were introduced in Spain in 1984, in order to give more flexibility to the labour market as a response to the high unemployment rate that Spain faced in that period. These types of contracts have been getting increasingly popular, peaking at an outstanding 34% of total contracts in Spain in 2006. Marchante at al. (2017). The objective of this study look is to empirically determine whether non-traditional contracts (part-time and/or fixed-term) in the accommodation industry have the same impacts on productivity compared to the other sectors in the Balearic Islands. The results of this study show that, in the Balearic Islands, firms with the high rate of fixed-term contracts are less productive than firms with the high rate of fixed-term contracts operating in different industries. This study also shows that partiality of contracts has no impact on productivity of firms in the Balearic Islands.