Abstract

http://ssrn.com/abstract=1716128
 
 

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What Drives the Demand for Temporary Agency Workers?


Elke J. Jahn


Government of the Federal Republic of Germany - Institute for Employment Research (IAB); University of Aarhus - Business and Social Sciences; Institute for the Study of Labor (IZA); University of Erlangen-Nuremberg - Department of Economics

Jan Bentzen


affiliation not provided to SSRN


IZA Discussion Paper No. 5333

Abstract:     
Temporary agency employment has grown steadily in most European countries over the past three decades as part of the general trend towards increased employment flexibility. Yet to this day, it remains an open question what drives the demand for temporary agency workers. The paper examines, first, whether the deregulation of temporary agency employment is responsible for the growth of the flexible staffing industry. Second, we investigate the cyclical behavior of temporary agency employment. Using monthly data for Germany covering the period 1973-2008, we show that the continuous liberalization of this sector is not responsible for the surge in temporary agency employment. Our analysis reveals, moreover, that temporary agency employment exhibits strong cyclical behavior and correlates with main economic indicators in real time. Since most European countries promoted the use of temporary agency employment in a similar way, we believe that our results may be interesting from an international perspective as well.

Number of Pages in PDF File: 23

Keywords: business cycle, labor law, temporary agency employment, regulation

JEL Classification: C41, J23, J40, J48, K31

working papers series


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Date posted: November 29, 2010  

Suggested Citation

Jahn, Elke J. and Bentzen, Jan, What Drives the Demand for Temporary Agency Workers?. IZA Discussion Paper No. 5333. Available at SSRN: http://ssrn.com/abstract=1716128

Contact Information

Elke J. Jahn (Contact Author)
Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )
Regensburger Str. 104
Nuremberg, 90478
Germany
University of Aarhus - Business and Social Sciences
Fuglesangs Alle 4
Building 1326, room 111
DK-8210 Aarhus, 8210
Denmark
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
University of Erlangen-Nuremberg - Department of Economics ( email )
Lange Gasse 20
Nuernberg, D-90403
Germany
Jan Bentzen
affiliation not provided to SSRN
No Address Available
Feedback to SSRN


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