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

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  • Carlo Gianelle

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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    More about this item

    Keywords

    Inter-firm networks; labour mobility; temporary employment agencies;
    All these keywords.

    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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