The effects of temporary workers on firms’ financial performance: evidence from China

Xiaoye Qian and Haiqian Wang

Applied Economics Letters, 2023, vol. 30, issue 5, 695-699

Abstract: This study investigates the relationship between temporary employment and firms’ financial performance in Chinese manufacturing firms. Using two waves of large social survey data, the empirical results reveal (1) the proportion of temporary workers has a significant inverted-U-shaped relationship with a firm’s financial performance, (2) a firm’s human resource treatment disparity between permanent and temporary workers (HR treatment disparity) strengthens the negative relationship between temporary employment and performance, and (3) the innovation-oriented firm strategy in conjunction with a higher proportion of temporary workers is associated with poorer firm performance.

Date: 2023
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DOI: 10.1080/13504851.2021.2014393

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