Temporary Agency Work and the Great Recession
26 Pages Posted: 9 May 2016
We investigate with German data how the use of temporary agency work has helped establishments to manage the economic and financial crisis in 2008/09. We examine the (regular) workforce development, use of short-time work, and business performance of establishments that made differential use of temporary agency work prior to the crisis. Overall, our results suggest that establishments with a greater use of temporary agency work coped better with the sharp decline in demand and made less frequent use of government-sponsored short-time work schemes.
Keywords: labour demand, employment adjustment, economic crisis, short-time work, temporary agency work, establishment data
JEL Classification: E32, J23, L23, J68
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