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Dual Labour Markets at Work: The Impact of Employers' Use of Temporary Agency Work on Regular Workers' Job Stability

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  • Hirsch, Boris

    (Leuphana University Lüneburg)

Abstract

Fitting duration models on an inflow sample of jobs in Germany starting in 2002-2010, this paper investigates the impact of employers' use of temporary agency work on regular workers' job stability. In line with dual labour market theory, I find that non-temp jobs are significantly more stable if employers utilise temps. The rise in job stability stems mainly from reduced transitions into non-employment suggesting that non-temp workers are safeguarded against involuntary job losses. My findings are robust to controlling for unobserved permanent employer characteristics and changes in the observational window that includes the labour market disruption of the Great Recession.

Suggested Citation

  • Hirsch, Boris, 2015. "Dual Labour Markets at Work: The Impact of Employers' Use of Temporary Agency Work on Regular Workers' Job Stability," IZA Discussion Papers 8804, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8804
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    References listed on IDEAS

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    8. repec:iab:iabfda:201308(en is not listed on IDEAS
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    More about this item

    Keywords

    dual labour markets; job stability; temporary agency work;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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