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

Christian Pfeifer
  • Institute of Economics, Leuphana University Lueneburg, Scharnhorststr. 1, Lüneburg, 21335, Germany
  • Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn, Germany
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and John P. WecheORCID iD: https://orcid.org/0000-0003-3801-1699

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.

    • Supplementary Material Details
  • Arvanitis, S. (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 14: 993–1016.

  • Bryson, A. (2013), Do Temporary Agency Workers Affect Workplace Performance? Journal of Productivity Analysis 39: 131–138.

  • Ferreira, J. (2016), The German Temporary Staffing Industry: Growth, Development, Scandal and Resistance. Industrial Relations Journal 47: 117–143.

  • Hirsch, B., S. Mueller (2012), The Productivity Effect of Temporary Agency Work: Evidence from German Panel Data. Economic Journal 122 (562): F216–F235.

  • Kleinknecht, A., R.M. Oostendorp, M.P. Pradhan, C. Naastepad (2006), Flexible Labour, Firm Performance and the Dutch Job Creation Miracle. International Review of Applied Economics 20: 171–187.

  • Nielen, S., A. Schiersch (2014), Temporary Agency Work and Firm Competitiveness: Evidence from German Manufacturing Firms. Industrial Relations 53: 365–393.

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The Journal of Economics and Statistics is a scientific journal published in Germany since 1863. The Journal publishes papers in all fields of economics and applied statistics. A specific focus is on papers combining theory with empirical analyses.

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