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The emergence of temporary work agencies

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  • Michael Neugart
  • Donald Storrie

Abstract

A striking feature of OECD labour markets in the 1990s has been the very rapid increase of temporary agency work. We augment the equilibrium unemployment model as developed by Pissarides and Mortensen with temporary work agencies in order to show that the improvement in the matching efficiency of agencies led to the emergence and growth of temporary agency work. We also find that temporary agency work does not necessarily crowd-out other jobs. Copyright 2006, Oxford University Press.

Suggested Citation

  • Michael Neugart & Donald Storrie, 2006. "The emergence of temporary work agencies," Oxford Economic Papers, Oxford University Press, vol. 58(1), pages 137-156, January.
  • Handle: RePEc:oup:oxecpp:v:58:y:2006:i:1:p:137-156
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    File URL: http://hdl.handle.net/10.1093/oep/gpi050
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    Cited by:

    1. Jahn, Elke J. & Pozzoli, Dario, 2011. "Does the Sector Experience Affect the Pay Gap for Temporary Agency Workers?," IZA Discussion Papers 5837, Institute for the Study of Labor (IZA).
    2. Jahn, Elke J. & Pozzoli, Dario, 2013. "The pay gap of temporary agency workers — Does the temp sector experience pay off?," Labour Economics, Elsevier, vol. 24(C), pages 48-57.
    3. Elke J. Jahn & Jan Bentzen, 2012. "What Drives the Demand for Temporary Agency Workers?," LABOUR, CEIS, vol. 26(3), pages 341-355, September.
    4. Beissinger, Thomas & Baudy, Philipp, 2015. "The impact of temporary agency work on trade union wage setting: A theoretical analysis," Hohenheim Discussion Papers in Business, Economics and Social Sciences 01-2015, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    5. Baumann, Florian & Friehe, Tim, 2012. "On the evasion of employment protection legislation," Labour Economics, Elsevier, vol. 19(1), pages 9-17.
    6. Jahn, Elke Jutta & Rosholm, Michael, 2015. "The Cyclicality of the Stepping Stone Effect of Temporary Agency Employment," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113117, Verein für Socialpolitik / German Economic Association.
    7. Eichhorst, Werner & Kendzia, Michael J. & al., et, 2013. "Report No. 57: The Role and Activities of Employment Agencies," IZA Research Reports 57, Institute for the Study of Labor (IZA).
    8. Chen Yu-Fu & Funke Michael, 2009. "Threshold Effects of Dismissal Protection Regulation and the Emergence of Temporary Work Agencies," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 13(4), pages 1-29, September.
    9. Adrienne T. Edisis, 2016. "The Effect of Unemployment Insurance on Temporary Help Services Employment," Journal of Labor Research, Springer, vol. 37(4), pages 484-503, December.
    10. Jennifer Ferreira, 2016. "The German temporary staffing industry: growth, development, scandal and resistance," Industrial Relations Journal, Wiley Blackwell, vol. 47(2), pages 117-143, March.
    11. Florian Baumann & Mario Mechtel & Nikolai Stähler, 2011. "Employment Protection and Temporary Work Agencies," LABOUR, CEIS, vol. 25(3), pages 308-329, September.
    12. Jahn, Elke J. & Rosholm, Michael, 2018. "The Cyclicality of the Stepping-Stone Effect of Temporary Agency Employment," IZA Discussion Papers 11377, Institute for the Study of Labor (IZA).
    13. Florian Baumann, 2008. "Employment Protection: The Case of Limited Enforceability," CESifo Working Paper Series 2346, CESifo Group Munich.
    14. Baudy, Philipp & Cords, Dario, 2016. "Deregulation of temporary agency employment in a unionized economy: Does this really lead to a substitution of regular employment?," Hohenheim Discussion Papers in Business, Economics and Social Sciences 06-2016, University of Hohenheim, Faculty of Business, Economics and Social Sciences.

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