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The Productivity Effect of Temporary Agency Work

Evidence from German Panel Data

Bibliographic Data

ID9720731
AuthorsBertrand Hirsch (0000-0002-6328-4931, Friedrich-Alexander-Universität Erlangen-Nürnberg), Boris Hirsch (Friedrich–Alexander‐University Erlangen‐Nuremberg), Steffen Mueller (0000-0003-4889-3058, Friedrich–Alexander‐University Erlangen–Nuremberg and CESifo)
Year2012
Volume122
Issue562
PagesF216-F235
Publication date2012-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2012.02536.x
OpenAlexW1687344771
LanguageEN
Citations received7
References cited34

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

Agency (philosophy · Business · Computer security · Econometrics · Economics · Endogeneity · Exploit · Flexibility (engineering · German · Industrial organization · Labour economics · Macroeconomics · Management · Microeconomics · Panel data · Productivity · Spillover effect · Work (physics · Computer Science · Employment and Welfare Studies · Engineering · Labor market dynamics and wage inequality · Retirement, Disability, and Employment

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Unique citing works7
Citations per year0,5
Citation span2012 - 2023 (12)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 7

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