The Employment of Temporary Agency Workers in the UK: With or Against the Trade Unions?
AbstractA firm's decision to employ agency workers may be perceived as a replacement of directly employed workers or as way to curb union power, which trade unions would oppose. Alternatively, trade unions may encourage the (temporary) employment of agency workers in a firm, if they manage to bargain higher wages for their members. We estimate the relationship between hiring agency workers and trade union activity at the workplace, in particular, the type of collective bargaining agreements. We use British data from the Workplace Employment Relations Surveys (WERS) of 1998 and 2004. The empirical association between the employment of agency workers and union strength is weak, but positive. Furthermore, workplaces with collective bargaining have lower wages in the presence of agency workers, suggesting that agency workers are hired against the unions.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4492.
Length: 25 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: Economica, 2013, 80 (317), 65–95
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Other versions of this item:
- René Böheim & Martina Zweimüller, 2009. "The employment of temporary agency workers in the UK – with or against the trade unions?," NRN working papers 2009-21, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
- René Böheim & Martina Zweimüller, 2009. "The employment of temporary agency workers in the UK – with or against the trade unions?," Economics working papers 2009-12, Department of Economics, Johannes Kepler University Linz, Austria.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-07 (All new papers)
- NEP-BEC-2009-11-07 (Business Economics)
- NEP-LAB-2009-11-07 (Labour Economics)
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