Incentives to Invest in the Human Capital of Temporary Agency Workers

Stephanie Schmidt and Kirsten Thommes

Zeitschrift fuer Personalforschung. German Journal of Research in Human Resource Management, 2007, vol. 21, issue 3, 232 - 251

Abstract: Growing diffusion of temporary agency work, in conjunction with the growing importance of human capital management, leads to the question who invests in the human capital of temporary agency workers. Therefore, we investigate the parties’ incentives to invest and review the small number of existing empirical works. We show that there are incentives for all parties to invest even in general human capital, using the human capital theory and the concept of psychological contracts. Clients’ incentives to invest crucially depend on their motives for using temporary agency work. Additionally, we analyze the evolving externalities of the investments and draw some conclusions con-cerning the implications for the further training of temporary agency workers.

Keywords: Temporary Agency Work; Incentives for Investments; Human Capital; Psychological Contract (search for similar items in EconPapers)
JEL-codes: J21 J22 J24 J31 J40 M12 M54 (search for similar items in EconPapers)
Date: 2007
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