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

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  • Xiaoye Qian
  • Haiqian Wang

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.

Suggested Citation

  • Xiaoye Qian & Haiqian Wang, 2023. "The effects of temporary workers on firms’ financial performance: evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 30(5), pages 695-699, March.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:5:p:695-699
    DOI: 10.1080/13504851.2021.2014393
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