Temporary Agency Work and Firm Performance: A Replication Study with Extensions

Christian Pfeifer and John P. Weche

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2020, vol. 240, issue 4, 455-465

Abstract: The authors analyze the nexus between temporary agency work (TAW) and firm performance. Compared to Hirsch and Mueller (2012, The Productivity Effect of Temporary Agency Work: Evidence from German Panel Data. Economic Journal 122 (562): F216-F235) and Nielen and Schiersch (2014, Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms. Industrial Relations 53: 365–393), the authors support a concave relationship between the TAW share and productivity, but find a convex relationship between the TAW share and unit labor costs, instead of a u-shape. Moreover, a new finding is that the correlation between the TAW share and profitability is only moderate.

Keywords: temporary agency work; firm competitiveness; productivity; profitability; unit labor costs (search for similar items in EconPapers)
JEL-codes: D22 J23 J31 J42 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:240:y:2020:i:4:p:455-465:n:1

DOI: 10.1515/jbnst-2018-0038

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