Effect of labour flexibility on productivity in the andalusian hotel industry

Abstract

In this work, we analyze the effect of labour flexibility on productivity in the Andalusian hotel industry. For this purpose, we use the data obtained by the Quality, Productivity and Competitiveness in the Hospitality Industry for Andalusia project (PO7/SEJ-02889). Using a expanded version of the Cobb-Douglas production function, the model distinguishes two employment shares: full-time permanent (standard work) and temporary plus part-time employees (non-standard work). Our results indicate that productivity in Andalusian hotels is lower the higher the percentage of temporary and part-time workers. Furthermore, there are no statistically significant differences between the negative impact on productivity of both types of labour contract. However, since the costs associated with both temporary and part-time workers are lower than those of workers with full-time permanent contracts, future studies should analyze the differential impact of all the types of contracts discussed on the mean cost per employee in hotels.