Inside the Black Box of Temporary Help Agencies
Based on a new panel dataset created in close cooperation with one of the largest temporary help agencies (THAs) in Germany, this paper presents novel evidence on key aspects of temporary agency work, a segment of the labor market that despite its growing importance remains underresearched. In particular, we provide detailed information on the internal operation of a THA and the allocative function it performs both as an intermediate demander and as a final supplier of labor in this submarket. In addition to offering first examination of effective wage and fee schedules, we document, among others, the rise of on-call hiring, recalls and fixed-term contracts in the recruitment of workers, the reasons for job termination, as well as the volume of labor actually contracted per worker and per worker-client match. We show that the THA manages to utilize effectively its workforce in assignments and keeps idle labor at a minimum. In fact, more than a third of workers exhibit multiple client engagements. One-off recruitment and dismissal costs per worker can thus effectively be spread across different clients.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kvasnicka, Michael & Werwatz, Axel, 2002.
"On the wages of temporary help service workers in Germany,"
SFB 373 Discussion Papers
2002,70, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Michael Kvasnicka & Axel Werwatz, 2003. "On the Wages of Temporary Help Service Workers in Germany," Labor and Demography 0309004, EconWPA.
- Lewis M. Segal & Daniel G. Sullivan, 1998. "Wage differentials for temporary services work: evidence from administrative data," Working Paper Series WP-98-23, Federal Reserve Bank of Chicago.
- Neugart, Michael & Storrie, Donald, 2002. "Temporary work agencies and equilibrium unemployment," Working Papers in Economics 83, University of Gothenburg, Department of Economics.
- Neugart, Michael & Storrie, Donald, 2002. "Temporary work agencies and equilibrium unemployment," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-203, Social Science Research Center Berlin (WZB).
- Lewis M. Segal & Daniel G. Sullivan, 1997. "The Growth of Temporary Services Work," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 117-136, Spring.
- Lewis Segal & Daniel Sullivan, 1996. "The growth of temporary services work," Working Paper Series, Macroeconomic Issues WP-96-26, Federal Reserve Bank of Chicago.
- Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538-538. Full references (including those not matched with items on IDEAS)