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Temporary Agency Work and Firm Competitiveness - Evidence from a panel data set of German manufacturing enterprises

Author

Listed:
  • Sebastian Nielen

    (Schumpeter School of Business and Economics at the University of Wuppertal)

  • Alexander Schiersch

    (German Institute for Economic Research, Berlin)

Abstract

This paper addresses the relationship between the utilization of temporary agency workers by firms and their competitiveness measured by unit labor costs, using a rich, newly built, data set of German manufacturing enterprises. The analysis is conducted by applying different panel data models while taking the inherent selection problem into account. Making use of dynamic panel data models allows us to control for firm specific fixed effects as well as for potential endogeneity of explanatory variables. The results indicate a U-shaped relationship between the extent that temporary agency workers are used and the competitiveness of firms.

Suggested Citation

  • Sebastian Nielen & Alexander Schiersch, 2011. "Temporary Agency Work and Firm Competitiveness - Evidence from a panel data set of German manufacturing enterprises," Schumpeter Discussion Papers sdp11006, Universitätsbibliothek Wuppertal, University Library.
    • Handle: RePEc:bwu:schdps:sdp11006
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    References listed on IDEAS

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    1. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2003. "The Role of Temporary Agency Employment in Tight Labor Markets," ILR Review, Cornell University, ILR School, vol. 57(1), pages 105-127, October.
    2. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2001. "The Role of Temporary Help Employment in Tight Labor Markets," Upjohn Working Papers 01-73, W.E. Upjohn Institute for Employment Research.
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    Cited by:

    1. Alejandro Micco & Pablo Muñoz-Henríquez, 2018. "The Impact of Extended Employment Protection Laws on the Demand for Temporary Agency Workers," Working Papers wp463, University of Chile, Department of Economics.

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    More about this item

    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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