Inside The Black Box of Temporary Help Agencies

Michael Kvasnicka

No 2003,43, SFB 373 Discussion Papers from Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes

Abstract: Based on a new panel dataset created in close cooperation with one of the largest temporary help agencies (THAs) in Germany, this paper presents novel evidence on key aspects of temporary agency work, a segment of the labor market that despite its growing importance remains underresearched. In particular, we provide detailed information on the internal operation of a THA and the allocative function it performs both as an intermediate demander and as a final supplier of labor in this submarket. In addition to offering first examination of effective wage and fee schedules, we document, among others, the rise of on-call hiring, recalls and fixed-term contracts in the recruitment of workers, the reasons for job termination, as well as the volume of labor actually contracted per worker and per worker-client match. We show that the THA manages to utilize effectively its workforce in assignments and keeps idle labor at a minimum. In fact, more than a third of workers exhibit multiple client engagements. One-off recruitment and dismissal costs per worker can thus effectively be spread across different clients.

Keywords: temporary help; agency work; flexible employment (search for similar items in EconPapers)
JEL-codes: J20 J30 J40 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Inside the Black Box of Temporary Help Agencies (2003)
Working Paper: Inside the Black Box of Temporary Help Agencies (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:sfb373:200343

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