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Temporary work agencies and equilibrium unemployment

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  • Neugart, Michael
  • Storrie, Donald

Abstract

During the 1990s, temporary agency work has increased rapidly in most OECD countries. We augment the equilibrium unemployment model developed by Pissarides and Mortensen with temporary work agencies. Our model implies that technological improvements for placements and de-regulation of the sector caused the emergence and growth of temporary agency work. Simulations of a calibrated version of the model show that `temp' work does not necessarily crowd out other, ‘regular’ jobs. -- Während der neunziger Jahre stieg der Anteil der Zeitarbeit gemessen an der Gesamtbeschäftigung in fast allen OECD Ländern stark an. Wir erweitern das von Pissarides und Mortensen entwickelte Arbeitsmarktmodell mit Zeitarbeit. Auf der Grundlage unseres Modells lässt sich zeigen, dass technologische Veränderungen in der Informations- und Kommunikationstechnologie und die Deregulierung der Zeitarbeit Aufkommen und Wachstum des Zeitarbeitssektors verursachten. Simulationen des kalibrierten Modells legen nahe, dass Zeitarbeit nicht notwendigerweise Normalarbeitsverhältnisse verdrängt.

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Paper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Unit: Labor Market Policy and Employment with number FS I 02-203.

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Date of creation: 2002
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Handle: RePEc:zbw:wzblpe:fsi02203

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  1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones or Dead Ends?," LABORatorio R. Revelli Working Papers Series 8, LABORatorio R. Revelli, Centre for Employment Studies.
  2. Coe, David T & Snower, Dennis J., 1997. "Policy Complementarities: The Case for Fundamental Labour Market Reform," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1585, C.E.P.R. Discussion Papers.
  3. Boone, J. & Fredriksson, P. & Holmlund, B. & Ours, J.C. van, 2007. "Optimal unemployment insurance with monitoring and sanctions," Open Access publications from Tilburg University urn:nbn:nl:ui:12-194308, Tilburg University.
  4. Wasmer, E., 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," DELTA Working Papers, DELTA (Ecole normale supérieure) 97-13, DELTA (Ecole normale supérieure).
  5. Fredriksson, Peter & Holmlund, Bertil, 1998. "Optimal Unemployment Insurance in Search Equilibrium," Working Paper Series, Uppsala University, Department of Economics 1998:2, Uppsala University, Department of Economics.
  6. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 87(3), pages 355-74, August.
  7. Bertil Holmlund & Donald Storrie, 2002. "Temporary Work in Turbulent Times: The Swedish Experience," CESifo Working Paper Series 671, CESifo Group Munich.
  8. Dolado, Juan J. & Felgueroso, Florentino & Jimeno, Juan F., 2000. "Explaining Youth Labor Market Problems in Spain: Crowding-Out, Institutions, or Technology Shifts?," IZA Discussion Papers 142, Institute for the Study of Labor (IZA).
  9. Holmlund, B. & Linden, J., 1991. "Job Matching, Temporary Public Employment, and Equilibrium Unemployment," Papers, Uppsala - Working Paper Series 1991l, Uppsala - Working Paper Series.
  10. Juan José Dolado & Florentino Felgueroso & Juan F. Jimeno, . "Explaining Youth Labor Market Problems in Spain: Crowding-Out, Institutions, or Technology Shifts?," Working Papers 2000-09, FEDEA.
  11. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  12. Dale T. Mortensen, 1982. "The Matching Process as a Noncooperative Bargaining Game," NBER Chapters, in: The Economics of Information and Uncertainty, pages 233-258 National Bureau of Economic Research, Inc.
  13. Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(721), pages F270-F295, June.
  14. Barbara Petrongolo & Christopher Pissarides, 2000. "Looking into the black box: a survey of the matching function," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 2122, London School of Economics and Political Science, LSE Library.
  15. Burda, Michael C, 1992. " A Note on Firing Costs and Severance Benefits in Equilibrium Unemployment," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 94(3), pages 479-89.
  16. Saint-Paul, G., 1995. "A Framework for Analyzing the Political Support for Active Labor Market Policy," DELTA Working Papers, DELTA (Ecole normale supérieure) 95-12, DELTA (Ecole normale supérieure).
  17. Almus, Matthias & Egeln, Jürgen & Lechner, Michael & Pfeiffer, Friedhelm & Spengler, Hannes, 1998. "Die gemeinnützige Arbeitnehmerüberlassung in Rheinland-Pfalz: Eine ökonometrische Analyse des Wiedereingliederungserfolgs," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 98-36, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  18. Dolado, Juan J. & Felgueroso, Florentino & Jimeno, Juan F., 2000. "Youth labour markets in Spain: Education, training, and crowding-out," European Economic Review, Elsevier, Elsevier, vol. 44(4-6), pages 943-956, May.
  19. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2001. "The Role of Temporary Help Employment in Tight Labor Markets," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 01-73, W.E. Upjohn Institute for Employment Research.
  20. Fonseca, Raquel & Lopez-Garcia, Paloma & Pissarides, Christopher A., 2001. "Entrepreneurship, start-up costs and employment," European Economic Review, Elsevier, Elsevier, vol. 45(4-6), pages 692-705, May.
  21. P. Diamond, 1980. "Mobility Costs, Frictional Unemployment and Efficiency," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 257, Massachusetts Institute of Technology (MIT), Department of Economics.
  22. Juan José Dolado & Carlos García-Serrano & Juan F. Jimeno, . "Drawing Lessons from the Boom of Temporary Jobs in Spain," Working Papers 2001-11, FEDEA.
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Cited by:
  1. repec:hal:journl:halshs-00113476 is not listed on IDEAS
  2. David H. Autor & Susan Houseman, 2005. "Do Temporary Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from 'Work First'," NBER Working Papers 11743, National Bureau of Economic Research, Inc.
  3. Etienne Campens & Solenne Tanguy, 2006. "The market for job placement : a model of headhunters," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00113476, HAL.
  4. Michael Kvasnicka, 2003. "Inside the Black Box of Temporary Help Agencies," Labor and Demography, EconWPA 0311001, EconWPA.
  5. Kyyrä, Tomi & Parrotta, Pierpaolo & Rosholm, Michael, 2009. "The Effect of Receiving Supplementary UI Benefits on Unemployment Duration," IZA Discussion Papers 3920, Institute for the Study of Labor (IZA).
  6. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, Springer, vol. 29(2), pages 138-161, June.
  7. Smirnykh, Larisa, 2005. "Labor leasing: economic theory, EU and Russia experience," MPRA Paper 21568, University Library of Munich, Germany.

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