TFP, Labor Productivity and the (Un)observed Labor Input: Temporary Agency Work

Alexander Schiersch

No 1532, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: The study focuses on the question of whether productivity estimates are biased due to the emergence of a new input that is usually omitted: temporary agency worker (TAW). The study analyzes labor productivity and TFP by means of a structural approach using a representative dataset of German manufacturing firms. The empirical results show, once TAW is taken into account, that: i) labor productivity in most manufacturing sectors is significantly lower; ii) average TFP differs significantly in most sectors; but iii) the coefficients for regular labor are not significantly different between estimations with and without TAW.

Keywords: Temporary agency work; total factor productivity; labor productivity; omitted variable bias; structural productivity estimation (search for similar items in EconPapers)
JEL-codes: D24 J24 L24 L60 (search for similar items in EconPapers)
Pages: 46 p.
Date: 2015
New Economics Papers: this item is included in nep-cse, nep-eff and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp1532

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