IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp4492.html
   My bibliography  Save this paper

The Employment of Temporary Agency Workers in the UK: With or Against the Trade Unions?

Author

Listed:
  • Böheim, René

    (University of Linz)

  • Zweimüller, Martina

    (University of Linz)

Abstract

A firm's decision to employ agency workers may be perceived as a replacement of directly employed workers or as way to curb union power, which trade unions would oppose. Alternatively, trade unions may encourage the (temporary) employment of agency workers in a firm, if they manage to bargain higher wages for their members. We estimate the relationship between hiring agency workers and trade union activity at the workplace, in particular, the type of collective bargaining agreements. We use British data from the Workplace Employment Relations Surveys (WERS) of 1998 and 2004. The empirical association between the employment of agency workers and union strength is weak, but positive. Furthermore, workplaces with collective bargaining have lower wages in the presence of agency workers, suggesting that agency workers are hired against the unions.

Suggested Citation

  • Böheim, René & Zweimüller, Martina, 2009. "The Employment of Temporary Agency Workers in the UK: With or Against the Trade Unions?," IZA Discussion Papers 4492, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4492
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp4492.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Susan N. Houseman, 2001. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
    2. Fehr, Ernst, 1990. "Cooperation, Harassment, and Involuntary Unemployment: Comment," American Economic Review, American Economic Association, vol. 80(3), pages 624-630, June.
    3. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    4. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1409-1448.
    5. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    6. David H. Autor, 2003. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 1-42, January.
    7. Heywood, John S. & Siebert, W. Stanley & Wei, Xiangdong, 2006. "Examining the Determinants of Agency Work: Do Family Friendly Practices Play a Role?," IZA Discussion Papers 2413, Institute of Labor Economics (IZA).
    8. Anil Verma, 2003. "What Do Unions Do to the Workplace? Union Effects on Management and HRM Policies," Journal of Labor Research, Transaction Publishers, vol. 26(3), pages 415-449, August.
    9. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
    10. Willman, Paul & Bryson, Alex, 2007. "Union organization in Great Britain," LSE Research Online Documents on Economics 19762, London School of Economics and Political Science, LSE Library.
    11. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2004. "Training in Europe," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 346-360, 04/05.
    12. John Purcell & Kate Purcell & Stephanie Tailby, 2004. "Temporary Work Agencies: Here Today, Gone Tomorrow?," British Journal of Industrial Relations, London School of Economics, vol. 42(4), pages 705-725, December.
    13. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521468398, January.
    14. Karen M. Olsen & Arne L. Kalleberg, 2004. "Non-Standard Work in Two Different Employment Regimes," Work, Employment & Society, British Sociological Association, vol. 18(2), pages 321-348, June.
    15. Brown , W. & Bryson , A. & Forth , J., 2008. "Competition and the Retreat from Collective Bargaining," Cambridge Working Papers in Economics 0831, Faculty of Economics, University of Cambridge.
    16. repec:bla:scandj:v:97:y:1995:i:3:p:369-84 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Salvatori, Andrea, 2012. "Union threat and non-union employment: A natural experiment on the use of temporary employment in British firms," Labour Economics, Elsevier, vol. 19(6), pages 944-956.
    2. Kristina Håkansson & Tommy Isidorsson, 2014. "The trade union response to agency labour in Sweden," Industrial Relations Journal, Wiley Blackwell, vol. 45(1), pages 22-38, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. René Böheim & Martina Zweimüller, 2013. "The Employment of Temporary Agency Workers in the UK : For or Against the Trade Unions?," Economica, London School of Economics and Political Science, vol. 80(317), pages 65-95, January.
    2. Francesco Devicienti & Paolo Naticchioni & Andrea Ricci, 2015. "How Do Demand Volatility And Unions Affect Temporary Employment? A Firm-Level Approach," Working Papers 0415, CREI Università degli Studi Roma Tre, revised 2015.
    3. Francesco Devicienti & Paolo Naticchioni & Andrea Ricci, 2018. "Temporary Employment, Demand Volatility, and Unions: Firm-Level Evidence," ILR Review, Cornell University, ILR School, vol. 71(1), pages 174-207, January.
    4. Salvatori, Andrea, 2012. "Union threat and non-union employment: A natural experiment on the use of temporary employment in British firms," Labour Economics, Elsevier, vol. 19(6), pages 944-956.
    5. John S. Heywood & W.S. Siebert & Xiangdong Wei, 2011. "Estimating the Use of Agency Workers: Can Family-Friendly Practices Reduce Their Use?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 535-564, July.
    6. Smirnykh, Larisa & Wörgötter, Andreas, 2019. "The importance of institutional and organizational characteristics for the use of fixed-term contracts in Russia," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(1), pages 89-121.
    7. Genevieve Knight & Zhang Wei, 2015. "Isolating the Determinants of Temporary Agency Worker Use by Firms: An Analysis of Temporary Agency Workers in Australian Aged Care," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(2), pages 205-237.
    8. David H. Autor & Susan N. Houseman & Sari Pekkala Kerr, 2017. "The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach," Journal of Labor Economics, University of Chicago Press, vol. 35(1), pages 149-190.
    9. Matthew Dey & Susan Houseman & Anne Polivka, 2010. "What Do We Know About Contracting Out in the United States? Evidence from Household and Establishment Surveys," NBER Chapters, in: Labor in the New Economy, pages 267-304, National Bureau of Economic Research, Inc.
    10. Ferreira, Maria & de Grip, Andries & van der Velden, Rolf, 2018. "Does informal learning at work differ between temporary and permanent workers? Evidence from 20 OECD countries," Labour Economics, Elsevier, vol. 55(C), pages 18-40.
    11. Ferreira Sequeda, M.T. & de Grip, A. & van der Velden, R.K.W., 2015. "Does on-the-job informal learning in OECD countries differ by contract duration," Research Memorandum 021, Maastricht University, Graduate School of Business and Economics (GSBE).
    12. Elisabetta Magnani & David Prentice, 2010. "Outsourcing And Unionization: A Tale Of Misallocated (Resistance) Resources," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 460-482, April.
    13. 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.
    14. Addison, John T. & Surfield, Christopher J., 2005. "‘Atypical Work’ and Compensation," IZA Discussion Papers 1477, Institute of Labor Economics (IZA).
    15. Adrienne T. Edisis, 2016. "The Effect of Unemployment Insurance on Temporary Help Services Employment," Journal of Labor Research, Springer, vol. 37(4), pages 484-503, December.
    16. Alejandro Micco & Pablo Muñoz-Henríquez, 2018. "The Impact of Extended Employment Protection Laws on the Demand for Temporary Agency Workers," Working Papers wp463, University of Chile, Department of Economics.
    17. Baudy, Philipp & Cords, Dario, 2016. "Deregulation of temporary agency employment in a unionized economy: Does this really lead to a substitution of regular employment?," Hohenheim Discussion Papers in Business, Economics and Social Sciences 06-2016, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    18. Carrasco Perea, Raquel & Jerez García-Vaquero, María Belén, 2024. "Temporary agency work and labor misallocation," UC3M Working papers. Economics 44503, Universidad Carlos III de Madrid. Departamento de Economía.
    19. Linda McDowell & Adina Batnitzky & Sarah Dyer, 2008. "Internationalization and the Spaces of Temporary Labour: The Global Assembly of a Local Workforce," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 750-770, December.
    20. IKEUCHI Kenta & FUKAO Kyoji & Cristiano PERUGINI, 2021. "Establishment Size, Workforce Composition and the College Wage Gap in Japan," Discussion papers 21022, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    Workplace Employment Relations Survey; flexibility; collective bargaining; trade union; work agency;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp4492. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.