Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67264
Authors: 
Dräger, Vanessa
Marx, Paul
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 6894
Abstract: 
Although the negative economic effects of temporary employment are widely discussed, cross-country research on firms' demand for temporary employment is rare. National studies indicate that workload fluctuations are one major motive for firms to employ temporary workers. By studying a novel data set of 18,500 firms from 20 countries, we show that workload fluctuations increase the probability of hiring temporary workers by eight percentage points in rigid labour markets, but no such effect is observed in flexible labour markets. This conditioning effect of employment protection is in line with a recently developed search-and-matching model. Our results are robust to subgroups, subsamples and alternative estimation strategies.
Subjects: 
temporary employment
employment protection
labour demand
firm-level data
JEL: 
J23
J28
J21
J63
J68
J82
Document Type: 
Working Paper

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