A firm's decision to employ agency workers may be perceived as a replace- ment of directly employed workers or as way to curb union power, which trade unions would oppose. Alternatively, trade unions may encourage the (tem- porary) employment of agency workers in a firm, if they manage to bargain higher wages for their members. We estimate the relationship between hir- ing 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 bar- gaining have lower wages in the presence of agency workers, suggesting that agency workers are hired against the unions.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number
2009-12.