Identifying the Substitution Effect of Temporary Agency Employment

Elke Jahn and Enzo Weber

No 6471, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper fills a gap in the literature by investigating whether temporary agency employment substitutes regular employment. To take into account the interaction between the two employment forms, we identify a SVAR model with correlated innovations by volatility regimes. We show that a positive shock to temporary agency employment increases overall employment, but also leads to substitution of regular jobs.

Keywords: substitution effect; temporary agency employment; Germany (search for similar items in EconPapers)
JEL-codes: C32 J21 J41 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2012-04
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (4)

Forthcoming - published in: Macroeconomic Dynamics, 2016, 20(5), 1264-1281

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https://docs.iza.org/dp6471.pdf (application/pdf)

Related works:
Journal Article: IDENTIFYING THE SUBSTITUTION EFFECT OF TEMPORARY AGENCY EMPLOYMENT (2016)
Working Paper: Identifying the Substitution Effect of Temporary Agency Employment (2012)
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