Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27650
Authors: 
Baumann, Florian
Mechtel, Mario
Stähler, Nikolai
Year of Publication: 
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

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