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Training Provision And Regulation: An Analysis Of The Temporary Help Industry

  • Fernando Muñoz-Bullón

    ()

This paper studies from an economic viewpoint the juridical rationality of mandatory training provisions on Temporary Help Agencies through the Spanish Law 14/94. No positive relationship is found between the improvement in Temporary Help Agencies’ added value levels and their investments in temps’ training. In analyzing this specific provision of Spanish Labor Law we adopt a positive focus with the aim of finding economic causes for its adoption and of explaining its effect on the functioning of the labour intermediation sector. The application of the non-market failure theory leads us to conclude that an efficient use of this legal prescription is limited. The investigated issue is of relevance in order to understand the economic effects of regulation from a Law and Economics perspective.

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Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb035412.

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Date of creation: Oct 2003
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Handle: RePEc:cte:wbrepe:wb035412
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  1. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  2. Levhari, David & Weiss, Yoram, 1974. "The Effect of Risk on the Investment in Human Capital," American Economic Review, American Economic Association, vol. 64(6), pages 950-63, December.
  3. John Haltiwanger & Marilyn E. Manser & Robert Topel, 1998. "Labor Statistics Measurement Issues," NBER Books, National Bureau of Economic Research, Inc, number halt98-1, January.
  4. Lewis Segal & Daniel Sullivan, 1996. "The growth of temporary services work," Working Paper Series, Macroeconomic Issues WP-96-26, Federal Reserve Bank of Chicago.
  5. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
  6. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January.
  7. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  8. Wolf, Charles, Jr, 1979. "A Theory of Nonmarket Failure: Framework for Implementation Analysis," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 107-39, April.
  9. Fougère & Kramarz & Thierry Magnac, 2000. "Youth employment policies in France," Working Papers 156232, Institut National de la Recherche Agronomique, France.
  10. Green, Francis, et al, 1999. "The Role of the State in Skill Formation: Evidence from the Republic of Korea, Singapore, and Taiwan," Oxford Review of Economic Policy, Oxford University Press, vol. 15(1), pages 82-96, Spring.
  11. Haskel, Jonathan & Martin, Christopher, 1993. "Do Skill Shortages Reduce Productivity? Theory and Evidence from the United Kingdom," Economic Journal, Royal Economic Society, vol. 103(417), pages 386-94, March.
  12. Eaton, Jonathan & Rosen, Harvey S, 1980. "Taxation, Human Capital, and Uncertainty," American Economic Review, American Economic Association, vol. 70(4), pages 705-15, September.
  13. Chatterji, Monojit, 1995. "Training Subsidies, Technical Progress and Economic Growth," The Manchester School of Economic & Social Studies, University of Manchester, vol. 63(3), pages 274-82, September.
  14. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
  15. Arrow, Kenneth J & Lind, Robert C, 1970. "Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, vol. 60(3), pages 364-78, June.
  16. Mack A. Moore, 1965. "The temporary help service industry: Historical development, operation, and scope," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 18(4), pages 554-569, July.
  17. Robert J. LaLonde, 1995. "The Promise of Public Sector-Sponsored Training Programs," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 149-168, Spring.
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