The productivity effect of temporary agency work: Evidence from German panel data
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In: The Economic Journal, Vol. 122, No. 562, 01.08.2012, p. F216-F235.
Research output: Journal contributions › Journal articles › Research › peer-review
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RIS
TY - JOUR
T1 - The productivity effect of temporary agency work
T2 - Evidence from German panel data
AU - Hirsch, Boris
AU - Mueller, Steffen
PY - 2012/8/1
Y1 - 2012/8/1
N2 - 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.
AB - 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.
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=84865300091&partnerID=8YFLogxK
U2 - 10.1111/j.1468-0297.2012.02536.x
DO - 10.1111/j.1468-0297.2012.02536.x
M3 - Journal articles
VL - 122
SP - F216-F235
JO - The Economic Journal
JF - The Economic Journal
SN - 0013-0133
IS - 562
ER -