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Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms

Sebastian Nielen () and Alexander Schiersch

No 1135, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper addresses the relationship between the utilization of temporary agency workers by firms and their competitiveness measured by unit labor costs, using a rich, newly built, data set of German manufacturing enterprises. The analysis is conducted by applying different panel data models while taking the inherent selection problem into account. Making use of dynamic panel data models allows us to control for firm specific fixed effects as well as for potential endogeneity of explanatory variables. The results indicate a U-shaped relationship between the extent that temporary agency workers are used and the competitiveness of firms.

Keywords: temporary agency work; competitiveness; firm performance; manufacturing (search for similar items in EconPapers)
JEL-codes: D24 L23 L60 (search for similar items in EconPapers)
Pages: 23 p.
Date: 2011
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Journal Article: Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms (2014) Downloads
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