IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Flexibility vs. screening: The performance effects of temporary agency work strategies

  • Michael Beckmann

    ()

  • Dieter Kuhn

    ()

    (University of Basel)

Registered author(s):

    This paper empirically examines the impact of temporary agency work strategies on firm performance using panel data from German establishments. Thereby, special attention is devoted to the question, whether there are performance differences be- tween establishments using temporary agency workers (TAWs) as a buffer stock (flexibility strategy) and establishments testing TAWs for permanent positions (screening strategy). Theoretically, there are good reasons for using one strategy as well as adopting the other. On the other hand, however, both strategies may also be associated with serious drawbacks to be borne by the establishments. Our empirical analysis suggests that establishments following the flexibility strategy perform signifi- cantly worse than establishments following the screening strategy. Hence, we con- clude that employers act in their own interest, if they credibly consider temporary workers for permanent jobs instead of implementing a system of first- and second- class employees.

    If you experience problems downloading a file, check if you have the proper application to view it first. 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.

    File URL: http://wwz.unibas.ch/uploads/tx_x4epublication/Flexibility_vs_Screening_LabEc.pdf
    Download Restriction: no

    Paper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2012/03.

    as
    in new window

    Length:
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:bsl:wpaper:2012/03
    Contact details of provider: Postal:
    Peter-Merian-Weg 6, Postfach, CH-4002 Basel

    Web page: http://wwz.unibas.ch

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Jahn, Elke J. & Rosholm, Michael, 2010. "Looking Beyond the Bridge: How Temporary Agency Employment Affects Labor Market Outcomes," IZA Discussion Papers 4973, Institute for the Study of Labor (IZA).
    2. Uwe Jirjahn, 2010. "Works councils and employment growth in German establishments," Cambridge Journal of Economics, Oxford University Press, vol. 34(3), pages 475-500.
    3. Chen, Yu-Fu & Funke, Michael, 2008. "Threshold Effects of Dismissal Protection Regulation and the Emergence of Temporary Work Agencies," SIRE Discussion Papers 2008-05, Scottish Institute for Research in Economics (SIRE).
    4. Engellandt, Axel & Riphahn, Regina, 2004. "Temporary Contracts and Employee Effort," CEPR Discussion Papers 4178, C.E.P.R. Discussion Papers.
    5. Acemoglu, D. & Pischke, J.S., 1997. "The Structure of Wages and Investment in General Training," Working papers 97-24, Massachusetts Institute of Technology (MIT), Department of Economics.
    6. Lars W. Mitlacher, 2005. "Temporary Agency Work, the Changing Employment Relationship and its Impact on Human Resource Management," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 16(3), pages 370-388.
    7. Garibaldi, Pietro, 2006. "Personnel Economics in Imperfect Labour Markets," OUP Catalogue, Oxford University Press, number 9780199280674, June.
    8. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    9. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
    10. Alfred Kleinknecht & Remco Oostendorp & Menno Pradhan & C. W. M. Naastepad, 2006. "Flexible Labour, Firm Performance and the Dutch Job Creation Miracle," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(2), pages 171-187.
    11. Jens Mohrenweiser & Thomas Zwick, 2008. "Why do Firms Train Apprentices? The Net Cost Puzzle Reconsidered," Economics of Education Working Paper Series 0016, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Oct 2008.
    12. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
    13. Fiona MacPhail & Paul Bowles, 2008. "Temporary work and neoliberal government policy: evidence from British Columbia, Canada," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(5), pages 545-563.
    14. George Erickcek & Susan Houseman & Arne Kalleberg, 2002. "The Effects of Temporary Services and Contracting Out on Low-Skilled Workers: Evidence from Auto Suppliers, Hospitals, and Public Schools," Upjohn Working Papers and Journal Articles 03-90, W.E. Upjohn Institute for Employment Research.
    15. Gianna Barbieri & Paolo Sestito, 2008. "Temporary Workers in Italy: Who Are They and Where They End Up," LABOUR, CEIS, vol. 22(1), pages 127-166, 03.
    16. Spyros Arvanitis, 2005. "Modes of labor flexibility at firm level: Are there any implications for performance and innovation? Evidence for the Swiss economy," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 993-1016, December.
    17. Lars W. Mitlacher, 2007. "The Role of Temporary Agency Work in Different Industrial Relations Systems - a Comparison between Germany and the USA," British Journal of Industrial Relations, London School of Economics, vol. 45(3), pages 581-606, 09.
    18. Origo, Federica & Pagani, Laura, 2009. "Flexicurity and job satisfaction in Europe: The importance of perceived and actual job stability for well-being at work," Labour Economics, Elsevier, vol. 16(5), pages 547-555, October.
    19. Hirsch, Boris & Mueller, Steffen, 2010. "Temporary agency work and the user firm's productivity: First evidence from German Panel Data," Discussion Papers 68, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    20. Zwick, Thomas, 2004. "Employee participation and productivity," Labour Economics, Elsevier, vol. 11(6), pages 715-740, December.
    21. Manfred Antoni & Elke J. Jahn, 2009. "Do Changes in Regulation Affect Employment Duration in Temporary Help Agencies?," ILR Review, Cornell University, ILR School, vol. 62(2), pages 226-251, January.
    22. Thomas Zwick, 2005. "Continuing Vocational Training Forms and Establishment Productivity in Germany," German Economic Review, Verein für Socialpolitik, vol. 6(2), pages 155-184, 05.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bsl:wpaper:2012/03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WWZ)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.