The Cyclicality of the Stepping-Stone Effect of Temporary Agency Employment

Arbeitspapier

This paper investigates whether the stepping-stone effect of temporary agency employment varies over the business cycle. Using German administrative data for the period 1985-2012 and an estimation framework based on the timing-of-events model, we estimate in-treatment and post-treatment effects and their relationship to the aggregate unemployment rate. We find evidence of a strong lock-in effect of agency employment, particularly in tight labor markets. This suggests that firms do not use agency employment as a screening device when unemployment is low. Moreover, the positive post-treatment effect is noticeably larger in periods of high unemployment, indicating that workers might be activating networks they established while in treatment. We further document that the matching quality in terms of earnings improves for those leaving unemployment directly from agency employment. This gain is higher when unemployment is low.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 11377

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Duration Analysis; Optimal Timing Strategies ; Particular Labor Markets: General ; Unemployment: Models, Duration, Incidence, and Job Search
• Thema: temporary agency employment ; stepping-stone effects ; cyclicality ; Germany

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Jahn, Elke J. ; Rosholm, Michael
• Ereignis: Veröffentlichung
• (wer): Institute of Labor Economics (IZA)
• (wo): Bonn
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/177181
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ