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Temporary work agencies and equilibrium unemployment

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  • Neugart, Michael
  • Storrie, Donald

Abstract

During the 1990s, temporary agency work has increased rapidly in most OECD countries. We augment the equilibrium unemployment model developed by Pissarides and Mortensen with temporary work agencies. Our model implies that technological improvements for placements and de-regulation of the sector caused the emergence and growth of temporary agency work. Simulations of a calibrated version of the model show that `temp' work does not necessarily crowd out other, 'regular' jobs.

Suggested Citation

  • Neugart, Michael & Storrie, Donald, 2002. "Temporary work agencies and equilibrium unemployment," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-203, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzblpe:fsi02203
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    References listed on IDEAS

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    Cited by:

    1. Nathalie Havet & Xavier Joutard & Alexis Pénot, 2019. "Les pratiques d’activité réduite et leurs impacts sur les trajectoires professionnelles : Une revue de la littérature: Une revue de la littérature," Sciences Po publications info:hdl:2441/1v5orglviq8, Sciences Po.
    2. repec:hal:spmain:info:hdl:2441/7dsgviekq78fpqub7ecg2334uj is not listed on IDEAS
    3. J. Ignacio García‐Pérez & Fernando Muñoz‐Bullón, 2005. "Temporary Help Agencies and Occupational Mobility," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(2), pages 163-180, April.
    4. Kvasnicka, Michael, 2003. "Inside The Black Box of Temporary Help Agencies," SFB 373 Discussion Papers 2003,43, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    5. Kyyrä, Tomi & Parrotta, Pierpaolo & Rosholm, Michael, 2013. "The effect of receiving supplementary UI benefits on unemployment duration," Labour Economics, Elsevier, vol. 21(C), pages 122-133.
    6. Nathalie Havet & Xavier Joutard & Alexis Penot, 2019. "Les pratiques d’activité réduite et leurs impacts sur les trajectoires professionnelles : une revue de la littérature," Revue d'économie politique, Dalloz, vol. 129(1), pages 11-47.
    7. David H. Autor & Susan N. Houseman, 2010. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 96-128, July.
    8. Etienne Campens & Solenne Tanguy, 2005. "The market for job placement : a model of head-hunters," Cahiers de la Maison des Sciences Economiques v06027, Université Panthéon-Sorbonne (Paris 1).
    9. Lars W. Mitlacher, 2007. "The Role of Temporary Agency Work in Different Industrial Relations Systems — a Comparison between Germany and the USA," British Journal of Industrial Relations, London School of Economics, vol. 45(3), pages 581-606, September.
    10. Etienne Campens & Solenne Tanguy, 2006. "The market for job placement: a model of headhunters," Post-Print halshs-00113476, HAL.
    11. Tito Boeri & Pierre Cahuc, 2022. "Labor Market Insurance Policies in the XXI Century," SciencePo Working papers Main hal-03878719, HAL.
    12. repec:hal:spmain:info:hdl:2441/1v5orglviq8epaecq1buersvk5 is not listed on IDEAS
    13. Lars W. Mitlacher, 2005. "Temporary Agency Work, the Changing Employment Relationship and its Impact on Human Resource Management," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(3), pages 370-388.
    14. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June.
    15. Smirnykh, Larisa, 2005. "Labor leasing: economic theory, EU and Russia experience," MPRA Paper 21568, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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