Travero, Silvio Vatiero, Massimiliano Zaninotto, Enrico 2025 This study examines the association between firm-level investments in automation technologies and employment outcomes, drawing on a panel dataset of approximately 10,450 Italian firms. We focus on the proliferation of non-standard labour contracts introduced by labour market reforms in the 2000s, which facilitated external labour flexibility. Our findings reveal a positive relationship between automation investments and the adoption of these flexible labour arrangements. Guided by a conceptual framework, we interpret this result as evidence of complementarity between automation technologies – viewed as flexible capital – and non-standard contractual arrangements – viewed as flexible labour. This complementarity is essential for enhancing operational flexibility, a critical driver of firm performance in competitive market environments. From a policy perspective, our analysis highlights the importance of measures that protect labour without undermining the efficiency gains enabled by automation. application/pdf https://n2t.net/ark:/12658/srd1336448 https://susi.usi.ch/global/documents/336448 https://susi.usi.ch/documents/336448/files/Traverso_Vatiero_Zaninotto JOIE.pdf eng info:eu-repo/semantics/altIdentifier/doi/10.1017/s1744137425000104 info:eu-repo/semantics/altIdentifier/ark/12658/srd1336448 info:eu-repo/semantics/openAccess CC BY Journal of Institutional Economics. - 2025, vol. 21, no. e15, p. 1-17 Automation Complementarity Flexible capital Flexible labour Labour contracts info:eu-repo/classification/udc/33 The complementarity between automation and flexible labor contracts : firm-level evidence from Italy http://purl.org/coar/resource_type/c_6501