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Temporary Agency Work and Firm Performance: A Replication Study with Extensions

Author

Listed:
  • Pfeifer Christian

    (Institute of Economics, Leuphana University Lueneburg, Scharnhorststr. 1, Lüneburg21335, Germany)

  • Weche John P.

    (Institute of Economics, Leuphana University Lueneburg, Scharnhorststr. 1, Lüneburg21335, Germany)

Abstract

The authors analyze the nexus between temporary agency work (TAW) and firm performance. Compared to Hirsch and Mueller (2012, The Productivity Effect of Temporary Agency Work: Evidence from German Panel Data. Economic Journal 122 (562): F216-F235) and Nielen and Schiersch (2014, Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms. Industrial Relations 53: 365–393), the authors support a concave relationship between the TAW share and productivity, but find a convex relationship between the TAW share and unit labor costs, instead of a u-shape. Moreover, a new finding is that the correlation between the TAW share and profitability is only moderate.

Suggested Citation

  • Pfeifer Christian & Weche John P., 2020. "Temporary Agency Work and Firm Performance: A Replication Study with Extensions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(4), pages 455-465, August.
    • Handle: RePEc:jns:jbstat:v:240:y:2020:i:4:p:455-465:n:1
    DOI: 10.1515/jbnst-2018-0038
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    References listed on IDEAS

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    1. Spyros Arvanitis, 2005. "Modes of labor flexibility at firm level: Are there any implications for performance and innovation? Evidence for the Swiss economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(6), pages 993-1016, December.
    2. Alex Bryson, 2013. "Do temporary agency workers affect workplace performance?," Journal of Productivity Analysis, Springer, vol. 39(2), pages 131-138, April.
    3. Sebastian Nielen & Alexander Schiersch, 2014. "Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(3), pages 365-393, July.
    4. Alfred Kleinknecht & Remco Oostendorp & Menno Pradhan & C. W. M. Naastepad, 2006. "Flexible Labour, Firm Performance and the Dutch Job Creation Miracle," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(2), pages 171-187.
    5. Boris Hirsch & Steffen Mueller, 2012. "The Productivity Effect of Temporary Agency Work: Evidence from German Panel Data," Economic Journal, Royal Economic Society, vol. 122(562), pages 216-235, August.
    6. Jennifer Ferreira, 2016. "The German temporary staffing industry: growth, development, scandal and resistance," Industrial Relations Journal, Wiley Blackwell, vol. 47(2), pages 117-143, March.
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    More about this item

    Keywords

    temporary agency work; firm competitiveness; productivity; profitability; unit labor costs;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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