Flexibility vs. screening: The performance effects of temporary agency work strategies
AbstractThis� paper� empirically� examines� the� impact� of temporary agency� work� strategies on firm� performance� using� panel� data�� from� German�� establishments.� Thereby,� special attention is devoted� to� the� question,� whether� there� are� performance differences� be- tween establishments� using� temporary� agency� workers� (TAWs)� as� a� buffer� stock (flexibility strategy) and� establishments testing� TAWs� for permanent positions (screening� strategy). Theoretically, there� are� good reasons� for using� one strategy as well as adopting the� other. On� the� other� hand,� however,� both� strategies may� also be associated� with� serious� drawbacks� to� be borne� by� the� establishments. Our� empirical analysis� suggests� that establishments following the� flexibility strategy perform� signifi- cantly�� worse� than�� establishments following� the� screening� strategy. Hence,� we� con- clude� that employers� act� in� their own interest, if they� credibly� consider� temporary workers� for� permanent� jobs� instead of implementing a� system� of first-� and� second- class employees.
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Bibliographic InfoPaper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2012/03.
Date of creation: 2012
Date of revision:
Temporary agency work; firm performance; flexibility strategy; screening strategy;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
- M55 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Labor Contracting Devices
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-13 (All new papers)
- NEP-BEC-2012-06-13 (Business Economics)
- NEP-CSE-2012-06-13 (Economics of Strategic Management)
- NEP-HRM-2012-06-13 (Human Capital & Human Resource Management)
- NEP-LAB-2012-06-13 (Labour Economics)
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