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Training Provision And Regulation: An Analysis Of The Temporary Help Industry

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Author Info
Fernando Muñoz-Bullón ()

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Abstract

This paper studies from an economic viewpoint the juridical rationality of mandatory training provisions on Temporary Help Agencies through the Spanish Law 14/94. No positive relationship is found between the improvement in Temporary Help Agencies’ added value levels and their investments in temps’ training. In analyzing this specific provision of Spanish Labor Law we adopt a positive focus with the aim of finding economic causes for its adoption and of explaining its effect on the functioning of the labour intermediation sector. The application of the non-market failure theory leads us to conclude that an efficient use of this legal prescription is limited. The investigated issue is of relevance in order to understand the economic effects of regulation from a Law and Economics perspective.

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Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb035412.

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Date of creation: Oct 2003
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Handle: RePEc:cte:wbrepe:wb035412

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  1. Wolf, Charles, Jr, 1979. "A Theory of Nonmarket Failure: Framework for Implementation Analysis," Journal of Law & Economics, University of Chicago Press, vol. 22(1), pages 107-39, April.
  2. Green, Francis, et al, 1999. "The Role of the State in Skill Formation: Evidence from the Republic of Korea, Singapore, and Taiwan," Oxford Review of Economic Policy, Oxford University Press, vol. 15(1), pages 82-96, Spring.
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  9. LaLonde, Robert J, 1995. "The Promise of Public Sector-Sponsored Training Programs," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 149-68, Spring. [Downloadable!] (restricted)
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  11. Levhari, David & Weiss, Yoram, 1974. "The Effect of Risk on the Investment in Human Capital," American Economic Review, American Economic Association, vol. 64(6), pages 950-63, December. [Downloadable!] (restricted)
  12. Fougère, Denis & Kramarz, Francis & Magnac, Thierry, 2000. "Youth Employment Policies In France," CEPR Discussion Papers 2394, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  13. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July. [Downloadable!] (restricted)
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  14. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring. [Downloadable!] (restricted)
  15. Arrow, Kenneth J & Lind, Robert C, 1970. "Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, vol. 60(3), pages 364-78, June.
  16. Haskel, Jonathan & Martin, Christopher, 1993. "Do Skill Shortages Reduce Productivity? Theory and Evidence from the United Kingdom," Economic Journal, Royal Economic Society, vol. 103(417), pages 386-94, March. [Downloadable!] (restricted)
  17. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1409-1448, November. [Downloadable!] (restricted)
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  18. Mack A. Moore, 1965. "The temporary help service industry: Historical development, operation, and scope," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 18(4), pages 554-569, July.
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