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http://hdl.handle.net/10419/27650
  
Title:Employment protection and temporary work agencies PDF Logo
Authors:Baumann, Florian
Mechtel, Mario
Stähler, Nikolai
Issue Date:2008
Series/Report no.:Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2008,26
Abstract:Employers who use temporary agency staff in contrast to regular staff are not affected by employment protection regulations when terminating a job. Therefore, services provided by temporary work agencies may be seen as a substitute for regular employment. In this paper, we analyze the effects of employment protection on the size of the temporary work agency sector in a model of equilibrium unemployment. We find that higher firing costs may even reduce temporary work agency employment if agencies themselves are subject to employment protection, a consideration which distinguishes our results from those for fixed-term employment arrangements.
Subjects:employment protection
temporary work agencies
search and matching models
unemployment
JEL:J68
J65
J64
J30
Document Type:Working Paper
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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