Employment Effects of the EU Temporary and Agency Workers Directive in Sweden

Morgan Westéus ()
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Morgan Westéus: Department of Economics, Umeå School of Business and Economics, Postal: Umeå University, S 901 87 Umeå, Sweden

No 887, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: This paper analyses possible effects on total employment, and the distribution between agency work and regular contracts as a consequence of the Swedish implementation of the EU Temporary and Agency Workers Directive in a dual labour market Mortensen-Pissarides search model. The directive states that the basic working and employment conditions for agency workers should be equal to those for a comparable employee at the client firm, and that all parties should actively facilitate the transition from agency employment to employment directly at the client firm. Even though the results suggest a negative net effect on total employment, the implementation is shown to have a positive impact on overall welfare, and that an increased transition probability from the agency sector into regular employment would contribute even more.

Keywords: Labour law; EU directive implementation; temporary agency work; unemployment (search for similar items in EconPapers)
JEL-codes: E24 J21 J42 J48 J64 K31 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2014-06-11, Revised 2014-10-23
New Economics Papers: this item is included in nep-eur, nep-lab, nep-law and nep-mac
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