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Flexibility vs. screening: The performance effects of temporary agency work strategies

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  • Michael Beckmann

    ()

  • Dieter Kuhn

    ()
    (University of Basel)

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    Abstract

    This� 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 Info

    Paper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2012/03.

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    Date of creation: 2012
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    Handle: RePEc:bsl:wpaper:2012/03

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    Related research

    Keywords: Temporary agency work; firm performance; flexibility strategy; screening strategy;

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    References

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    15. Origo, Federica & Pagani, Laura, 2009. "Flexicurity and job satisfaction in Europe: The importance of perceived and actual job stability for well-being at work," Labour Economics, Elsevier, vol. 16(5), pages 547-555, October.
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    17. Alfred Kleinknecht & Remco Oostendorp & Menno Pradhan & C. W. M. Naastepad, 2006. "Flexible Labour, Firm Performance and the Dutch Job Creation Miracle," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(2), pages 171-187.
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    20. Fiona MacPhail & Paul Bowles, 2008. "Temporary work and neoliberal government policy: evidence from British Columbia, Canada," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(5), pages 545-563.
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