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Temporary employment agencies make the world smaller:Evidence from labour mobility networks

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  • Carlo Gianelle

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Abstract

This paper investigates how employment intermediaries affected the inter-firm network of worker mobility in an region of Italy in response of the reform that first allowed for temporary employment agencies in 1997. We map worker reallocations from a matched employer-employee dataset onto a directed graph, where vertices indicate firms, and links denote transfers of workers between firms. Using network-based methodologies we find that temporary employment agencies significantly increase network integration and practicability, while fastly increasing control over hiring channels. The policy implications of the results are discussed, highlighting the potential of network analysis as monitoring tool for regional and local labour markets.

Suggested Citation

  • Carlo Gianelle, 2011. "Temporary employment agencies make the world smaller:Evidence from labour mobility networks," Department of Economics University of Siena 618, Department of Economics, University of Siena.
  • Handle: RePEc:usi:wpaper:618
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    File URL: http://repec.deps.unisi.it/quaderni/618.pdf
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    References listed on IDEAS

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    1. Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2006. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Microfoundations of a High-Technology Cluster," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 472-481, August.
    2. Giuseppe Tattara & Marco Valentini, 2010. "Turnover and Excess Worker Reallocation. The Veneto Labour Market between 1982 and 1996," LABOUR, CEIS, vol. 24(4), pages 474-500, December.
    3. Cooper, David P., 2001. "Innovation and reciprocal externalities: information transmission via job mobility," Journal of Economic Behavior & Organization, Elsevier, vol. 45(4), pages 403-425, August.
    4. Giuseppe Porro & Andrea Vezzulli & Stefano Maria Iacus, 2004. "Temporary Agency Workers in Italy: Alternative Techniques of Classification," LABOUR, CEIS, vol. 18(4), pages 699-725, December.
    5. David H. Autor, 2009. "Introduction to "Studies of Labor Market Intermediation"," NBER Chapters,in: Studies of Labor Market Intermediation, pages 1-23 National Bureau of Economic Research, Inc.
    6. Sanjeev Goyal & Marco J. van der Leij & José Luis Moraga-Gonzalez, 2006. "Economics: An Emerging Small World," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 403-432, April.
    7. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2009. "How does labour mobility affect the performance of plants? The importance of relatedness and geographical proximity," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 169-190, March.
    8. Nicola Brandt & Jean-Marc Burniaux & Romain Duval, 2005. "Assessing the OECD Jobs Strategy: Past Developments and Reforms," OECD Economics Department Working Papers 429, OECD Publishing.
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    12. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2005. "Temporary Work Agencies in Italy: A Springboard Toward Permanent Employment?," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(1), pages 1-27, September.
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    More about this item

    Keywords

    Inter-firm networks; labour mobility; temporary employment agencies;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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