Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/126105 
Year of Publication: 
2015
Series/Report no.: 
DIW Discussion Papers No. 1532
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
The study focuses on the question of whether productivity estimates are biased due to the emergence of a new input that is usually omitted: temporary agency worker (TAW). The study analyzes labor productivity and TFP by means of a structural approach using a representative dataset of German manufacturing firms. The empirical results show, once TAW is taken into account, that: i) labor productivity in most manufacturing sectors is significantly lower; ii) average TFP differs significantly in most sectors; but iii) the coefficients for regular labor are not significantly different between estimations with and without TAW.
Subjects: 
temporary agency work
total factor productivity
labor productivity
omitted variable bias
structural productivity estimation
JEL: 
D24
J24
L24
L60
Document Type: 
Working Paper

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