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Flexibility, Dual Labour Markets, and Temporary Employment. Empirical Evidence from German Establishment Data

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  • Christian Pfeifer

    (Institut fuer empirische Wirtschaftsforschung, Universitaet Hannover)

Abstract

The study examines, what forms and instruments firms use to react flexibly to demand-induced output fluctuations, and, if they are used in a complementary or substitutable way. Empirical evidence shows a rather complementary relationship. Moreover, the determinants of temporary employment (fixed-term contracts and temporary agency work) and the impact of these flexible employment forms on job security and job stability of regular employment are analyzed. One result is that positive developments of sales covary with a higher probability and more wide-spread use of temporary employment, which concurs with dual labour market theory. But estimations for job security and job stability indicate that temporary employment does not lower the number of layoffs and quits as is proposed by the core-periphery hypothesis.

Suggested Citation

  • Christian Pfeifer, 2005. "Flexibility, Dual Labour Markets, and Temporary Employment. Empirical Evidence from German Establishment Data," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(3), pages 404-422.
    • Handle: RePEc:nms:mamere:1861-9908_mrev_2005_03_pfeifer
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    File URL: https://www.nomos-elibrary.de/10.5771/0935-9915-2005-3-404
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Larisa Smirnykh & Andreas Wörgötter, 2013. "Why do Russian Firms Use Fixed-Term and Agency Work Contracts?," OECD Economics Department Working Papers 1014, OECD Publishing.
    2. Smirnych, L. I. & Wörgötter, Andreas, 2016. "The importance of institutional and organizational characteristics for the use of fixed-term and agency work contracts in Russia," ECON WPS - Working Papers in Economic Theory and Policy 09/2016, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    3. Beckmann, Michael & Kuhn, Dieter, 2010. "Complementarities between workplace organisation and human resource management : evidence from Swiss firm-level panel data," Working papers 2010/03, Faculty of Business and Economics - University of Basel.
    4. Addison, John T. & Teixeira, Paulino & Grunau, Philipp & Bellmann, Lutz, 2018. "Worker Representation and Temporary Employment in Germany: The Deployment and Extent of Fixed-Term Contracts and Temporary Agency Work," IZA Discussion Papers 11378, Institute of Labor Economics (IZA).
    5. A. Arrighetti & E. Bartoloni & F. Landini & C. Pollio, 2019. "Exuberant proclivity towards non-standard employment: evidence from linked employer-employee data," Economics Department Working Papers 2019-EP02, Department of Economics, Parma University (Italy).
    6. Jochen Späth, 2013. "Non-standard Employment, Working Time Arrangements, Establishment Entry and Exit," IAW Discussion Papers 98, Institut für Angewandte Wirtschaftsforschung (IAW).
    7. Jerzy Kaźmierczyk & Jerzy Kaźmierczyk & Aleksandra Chinalska, 2018. "Flexible forms of employment, an opportunity or a curse for the modern economy? Case study: banks in Poland," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(2), pages 782-798, December.
    8. Smirnykh, Larisa & Wörgötter, Andreas, 2019. "The importance of institutional and organizational characteristics for the use of fixed-term contracts in Russia," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(1), pages 89-121.
    9. repec:cte:wbrepe:wb082805 is not listed on IDEAS
    10. Christian Pfeifer, 2009. "Fixed‐term Contracts and Employment Adjustment: An Empirical Test of the Core–Periphery Hypothesis Using German Establishment Data," The Economic Record, The Economic Society of Australia, vol. 85(268), pages 92-107, March.

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    More about this item

    Keywords

    Flexibility; Dual Labour Markets; Fixed-term Contracts; Temporary Agency Work;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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