The Productivity Effect of Temporary Agency Work: Evidence from German Panel Data

Hirsch B, Müller S (2012)

Publication Language: English

Publication Type: Journal article

Publication year: 2012

Journal

The Economic Journal Wiley-Blackwell

Publisher: Wiley-Blackwell

Book Volume: 122

Pages Range: F216-F235

Journal Issue: 562

DOI: 10.1111/j.1468-0297.2012.02536.x

Abstract

This study investigates the effect of temporary agency work on the user firm’s productivity. We hypothesise that using temporary agency work to enhance numerical flexibility and to screen job candidates may increase productivity, whereas temporary workers’ lower firm‐specific human capital and spillover effects on the user’s permanent employees may adversely affect productivity. Other than the sparse existing literature on this issue, we exploit a large panel data set and control for time‐invariant and time‐varying unobserved heterogeneity by using the system GMM estimator. We find a robust hump‐shaped effect of the extent of temporary agency work on the user firm’s productivity.

Authors with CRIS profile

Boris Hirsch Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik Steffen Müller Lehrstuhl für Statistik und empirische Wirtschaftsforschung

How to cite

APA:

Hirsch, B., & Müller, S. (2012). The Productivity Effect of Temporary Agency Work: Evidence from German Panel Data. The Economic Journal, 122(562), F216-F235. https://dx.doi.org/10.1111/j.1468-0297.2012.02536.x

MLA:

Hirsch, Boris, and Steffen Müller. "The Productivity Effect of Temporary Agency Work: Evidence from German Panel Data." The Economic Journal 122.562 (2012): F216-F235.

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