Inside The Black Box of Temporary Help Agencies

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 373 Discussion Paper ; No. 2003,43

Classification and Topics

• Classification: Wirtschaft ; Demand and Supply of Labor: General ; Particular Labor Markets: General ; Wages, Compensation, and Labor Costs: General
• Subject: temporary help ; agency work ; flexible employment ; Leiharbeit ; Arbeitsvermittlung ; Arbeitsnachfrage ; Arbeitsangebot ; Matching ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kvasnicka, Michael
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes
• (where): Berlin
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/22257
• URN: urn:nbn:de:kobv:11-10050774
• Last update: 10.03.2025, 11:45 AM CET