Temporary agency work and the user firm's productivity: First evidence from German Panel Data

Boris Hirsch and Steffen Mueller

No 68, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: This paper investigates the relationship between the use of temporary agency work and the user firm's productivity. We hypothesise that modest use enhances numerical flexibility and thus productivity, while excessive use mirrors lowproductivity strategies utilising less social and human capital and primarily aims at circumventing labour market regulations. In contrast to the sparse existing literature on this issue, we apply a large panel data set and fixed effects techniques. We find a robust hump-shaped relationship between the extent of temporary agency work use and the user firm's productivity, which corroborates our hypotheses.

Keywords: temporary agency work; firm productivity; flexible labour (search for similar items in EconPapers)
JEL-codes: J50 L22 L23 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-bec
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:faulre:68

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