Dual labour markets at work: The impact of employers' use of temporary agency work on regular workers' job stability

Boris Hirsch

VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy from Verein für Socialpolitik / German Economic Association

Abstract: Fitting duration models on an inflow sample of jobs in Germany starting in 2002-2010, this paper investigates the impact of employers' use of temporary agency work on regular workers' job stability. In line with dual labour market theory, I find that non-temp jobs are significantly more stable if employers utilise temps. The rise in job stability stems mainly from reduced transitions into non-employment suggesting that non-temp workers are safeguarded against involuntary job losses. My findings are robust to controlling for unobserved permanent employer characteristics and changes in the observational window that includes the labour market disruption of the Great Recession.

JEL-codes: J21 J41 J63 (search for similar items in EconPapers)
Date: 2015
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https://www.econstor.eu/bitstream/10419/113014/1/VfS_2015_pid_10.pdf (application/pdf)

Related works:
Working Paper: Dual Labour Markets at Work: The Impact of Employers' Use of Temporary Agency Work on Regular Workers' Job Stability (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc15:113014

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