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Worker Representation and Temporary Employment in Germany: The Deployment and Extent of Fixed-Term Contracts and Temporary Agency Work

Author

Listed:
  • Addison, John T.

    () (University of South Carolina)

  • Teixeira, Paulino

    () (University of Coimbra)

  • Grunau, Philipp

    () (Institut für Arbeitsmarkt- und Berufsforschung)

  • Bellmann, Lutz

    () (Institute for Employment Research (IAB), Nuremberg)

Abstract

This study examines the potential impact of works councils and unions on the deployment of fixed-term contracts and agency temps. We report inter al. that works councils are associated with a higher number of temporary agency workers when demand volatility is high while the opposite holds for fixed-term contracts. These disparities likely reflect differences in function, with agency work being more directed toward the protection of a shrinking core and fixed-term contacts being as much a port of entry as a buffer stock. We are also able to identify the number of new hires with a fixed-term contract as well as the number of FTC conversions (into regular employment) and renewals, the correlates of which flows are broadly consistent with the stock data.

Suggested Citation

  • Addison, John T. & Teixeira, Paulino & Grunau, Philipp & Bellmann, Lutz, 2018. "Worker Representation and Temporary Employment in Germany: The Deployment and Extent of Fixed-Term Contracts and Temporary Agency Work," IZA Discussion Papers 11378, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11378
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    References listed on IDEAS

    as
    1. Christian Pfeifer, 2005. "Flexibility, Dual Labour Markets, and Temporary Employment. Empirical Evidence from German Establishment Data," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 16(3), pages 404-422.
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    4. Sebastian Nielen & Alexander Schiersch, 2014. "Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(3), pages 365-393, July.
    5. Spyros Arvanitis, 2005. "Modes of labor flexibility at firm level: Are there any implications for performance and innovation? Evidence for the Swiss economy," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 993-1016, December.
    6. Boockmann, Bernhard & Hagen, Tobias, 2008. "Fixed-term contracts as sorting mechanisms: Evidence from job durations in West Germany," Labour Economics, Elsevier, vol. 15(5), pages 984-1005, October.
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    11. Beckmann, Michael & Kuhn, Dieter, 2009. "Temporary agency work and firm performance : evidence from German establishment-level panel data," Working papers 2009/01, Faculty of Business and Economics - University of Basel.
    12. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
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    14. John T. Addison & Chad D. Cotti & Christopher J. Surfield, 2015. "Atypical Jobs: Stepping Stones or Dead Ends? Evidence from the NLSY79," Manchester School, University of Manchester, vol. 83(1), pages 17-55, January.
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    More about this item

    Keywords

    agency temps; fixed-term contracts; stepping stones; buffer stocks; labor market duality; extensive/intensive margins; works councils; unions; collective bargaining; demand volatility; complementarity; Germany;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J - Labor and Demographic Economics
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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