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

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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, Universit├Ątsbibliothek Wuppertal, University Library.
  • Handle: RePEc:bwu:schdps:sdp11006
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    References listed on IDEAS

    as
    1. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2001. "The Role of Temporary Help Employment in Tight Labor Markets," Upjohn Working Papers and Journal Articles 01-73, W.E. Upjohn Institute for Employment Research.
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    More about this item

    Keywords

    temporary agency work; competitiveness; firm performance; manufacturing;

    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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