Dual labor markets at work: The impact of employers' use of temporary agency work on regular workers' job stability

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

Fitting duration models on an inflow sample of jobs in Germany starting in 2002 to 2010, the author investigates the impact of employers' use of temporary agency work on regular workers' job stability. In line with dual labor market theory, the author finds that nontemporary jobs are significantly more stable when employers use temporary agency workers. The rise in job stability stems mainly from reduced transitions into nonemployment, suggesting that nontemporary workers are safeguarded against involuntary job losses. The findings are robust to controlling for unobserved permanent employer characteristics and changes in the observational window that comprises the labor market disruption of the Great Recession.

Original languageEnglish
JournalIndustrial and Labor Relations Review
Volume69
Issue number5
Pages (from-to)1191-1215
Number of pages25
ISSN0019-7939
DOIs
Publication statusPublished - 01.10.2016
Externally publishedYes

    Research areas

  • Dual labor markets, Duration analysis, Job security, Job stability, Labor market flexibility, Temporary agency work, Temporary workers
  • Economics

DOI