Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123429 
Year of Publication: 
2012
Series/Report no.: 
WWZ Discussion Paper No. 2012/03
Publisher: 
University of Basel, Center of Business and Economics (WWZ), Basel
Abstract: 
This paper empirically examines the impact of temporary agency work strategies on firm performance using panel data from German establishments. Thereby, special attention is devoted to the question, whether there are performance differences be- tween establishments using temporary agency workers (TAWs) as a buffer stock (flexibility strategy) and establishments testing TAWs for permanent positions (screening strategy). Theoretically, there are good reasons for using one strategy as well as adopting the other. On the other hand, however, both strategies may also be associated with serious drawbacks to be borne by the establishments. Our empirical analysis suggests that establishments following the flexibility strategy perform signifi- cantly worse than establishments following the screening strategy. Hence, we con- clude that employers act in their own interest, if they credibly consider temporary workers for permanent jobs instead of implementing a system of first- and second- class employees.
Subjects: 
Temporary agency work
firm performance
flexibility strategy
screening strategy
JEL: 
C23
J24
J42
J82
M55
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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