A new version of this entry is available:
Loading...
ResearchPaper
2015
The impact of temporary agency work on trade union wage setting : a theoretical analysis
The impact of temporary agency work on trade union wage setting : a theoretical analysis
Abstract (English)
Focusing on the cost-reducing motive behind the use of temporary agency employment, this paper aims at providing a better theoretical understanding of the effects of temporary agency work on the wage-setting process, trade unions’ rents, firms’ profits and employment. It is shown that trade unions may find it optimal to accept lower wages to prevent firms from using temporary agency workers. Hence, the firms’ option to use agency workers may affect wage setting also in those firms that only employ regular workers. However, if firms decide to employ agency workers, trade union wage claims will increase for the (remaining) regular workers. An intensive use of temporary agency workers in high-wage firms may therefore be the cause and not the consequence of the high wage level in those firms. Even though we assume monopoly unions that ascribe the highest possible wage-setting power to the unions, the economic rents of trade unions decline because of the firms’ option to use temporary agency work, whereas firms’ profits may increase.
File is subject to an embargo until
This is a correction to:
A correction to this entry is available:
This is a new version of:
Notes
Publication license
Publication series
Hohenheim discussion papers in business, economics and social sciences; 2015,01
Published in
Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics
Examination date
Supervisor
Edition / version
Citation
Identification
DOI
ISSN
ISBN
Language
English
Publisher
Publisher place
Classification (DDC)
330 Economics
Original object
Standardized keywords (GND)
Sustainable Development Goals
BibTeX
@techreport{Baudy2015,
url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5895},
author = {Baudy, Philipp and Beißinger, Thomas},
title = {The impact of temporary agency work on trade union wage setting : a theoretical analysis},
year = {2015},
school = {Universität Hohenheim},
series = {Hohenheim discussion papers in business, economics and social sciences},
}