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Temporary agency work and the user firm's productivity: First evidence from German Panel Data

  • Hirsch, Boris
  • Mueller, Steffen

This paper investigates the relationship between the use of temporary agency work and the user firm's productivity. We hypothesise that modest use enhances numerical flexibility and thus productivity, while excessive use mirrors lowproductivity strategies utilising less social and human capital and primarily aims at circumventing labour market regulations. In contrast to the sparse existing literature on this issue, we apply a large panel data set and fixed effects techniques. We find a robust hump-shaped relationship between the extent of temporary agency work use and the user firm's productivity, which corroborates our hypotheses.

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Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 68.

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Date of creation: 2010
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Handle: RePEc:zbw:faulre:68
Contact details of provider: Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/

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  1. Addison, John T. & Schnabel, Claus, 2009. "Worker directors: a German product that didn't export?," IWQW Discussion Paper Series 01/2009, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  2. Mosthaf, Alexander & Schank, Thorsten & Schnabel, Claus, 2009. "Low-Wage Employment versus Unemployment: Which One Provides Better Prospects for Women?," IZA Discussion Papers 4611, Institute for the Study of Labor (IZA).
  3. List, Juliane & Schnabel, Claus & Klaus, Anton, 2010. "Erfolg und Misserfolg bei der Ausbildungsplatzsuche: Eine empirische Untersuchung von Hauptschülern im Landkreis Nürnberger Land," Discussion Papers 67, .
  4. Moritz, Michael, 2008. "Spatial effects of open borders on the Czech labour market," IAB Discussion Paper 200830, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  5. Jung, Sven & Schnabel, Claus, 2009. "Paying more than necessary? The wage cushion in Germany," Discussion Papers 63, .
  6. Hirsch, Boris & Schank, Thorsten & Schnabel, Claus, 2009. "Works Councils and Separations: Voice, Monopoly, and Insurance Effects," IZA Discussion Papers 4126, Institute for the Study of Labor (IZA).
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