The emergence of temporary work agencies

Michael Neugart and Donald Storrie

Oxford Economic Papers, 2006, vol. 58, issue 1, 137-156

Abstract: A striking feature of OECD labour markets in the 1990s has been the very rapid increase of temporary agency work. We augment the equilibrium unemployment model as developed by Pissarides and Mortensen with temporary work agencies in order to show that the improvement in the matching efficiency of agencies led to the emergence and growth of temporary agency work. We also find that temporary agency work does not necessarily crowd-out other jobs. Copyright 2006, Oxford University Press.

Date: 2006
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