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Employment Effects of the EU Temporary and Agency Workers Directive in Sweden

Listed author(s):
  • Westéus, Morgan

    ()

    (Department of Economics, Umeå School of Business and Economics)

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    This paper analyses possible effects on total employment, and the distribution between agency work and regular contracts as a consequence of the Swedish implementation of the EU Temporary and Agency Workers Directive in a dual labour market Mortensen-Pissarides search model. The directive states that the basic working and employment conditions for agency workers should be equal to those for a comparable employee at the client firm, and that all parties should actively facilitate the transition from agency employment to employment directly at the client firm. Even though the results suggest a negative net effect on total employment, the implementation is shown to have a positive impact on overall welfare, and that an increased transition probability from the agency sector into regular employment would contribute even more.

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    File URL: http://www.econ.umu.se/DownloadAsset.action?contentId=236284&languageId=3&assetKey=ues887
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    Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 887.

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    Length: 23 pages
    Date of creation: 11 Jun 2014
    Date of revision: 23 Oct 2014
    Handle: RePEc:hhs:umnees:0887
    Contact details of provider: Postal:
    Department of Economics, Umeå University, S-901 87 Umeå, Sweden

    Phone: 090 - 786 61 42
    Fax: 090 - 77 23 02
    Web page: http://www.econ.umu.se/
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