Flexibility vs. screening: The performance effects of temporary agency work strategies
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.
|Date of creation:||2012|
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