Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms
AbstractThis paper addresses the relationship between the utilization of temporary agency workers by firms and their competitiveness measured by unit labor costs, using a rich, newly built, data set of German manufacturing enterprises. The analysis is conducted by applying different panel data models while taking the inherent selection problem into account. Making use of dynamic panel data models allows us to control for firm specific fixed effects as well as for potential endogeneity of explanatory variables. The results indicate a U-shaped relationship between the extent that temporary agency workers are used and the competitiveness of firms.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1135.
Length: 23 p.
Date of creation: 2011
Date of revision:
temporary agency work; competitiveness; firm performance; manufacturing;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-21 (All new papers)
- NEP-BEC-2011-07-21 (Business Economics)
- NEP-CSE-2011-07-21 (Economics of Strategic Management)
- NEP-EFF-2011-07-21 (Efficiency & Productivity)
- NEP-EUR-2011-07-21 (Microeconomic European Issues)
- NEP-LAB-2011-07-21 (Labour Economics)
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