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ResearchPaper
2016

Deregulation of temporary agency employment in a unionized economy : does this really lead to a substitution of regular employment

Abstract (English)

There have been continuous deregulation efforts concerning temporary agency employment in almost all European countries aiming at an increasing exibility in the European labor markets. This paper theoretically investigates the effects of a legal deregulation of temporary agency employment on wage setting and the employment structure in a unionized economy with labor market frictions. Multiple-worker firms bargain simultaneously with temporary agencies and labor unions to determine the respective labor costs. It is shown that there is a hump-shaped relationship between the degree of legal deregulation of temporary agency employment and the rate of temporary employment used in the production process. Temporary agency employment may even decrease despite its deregulation. Furthermore, regular employment monotonically increases, while individual workers and labor unions suffer from deregulation due to declining wages and a reduction in labor unions utility.

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Notes

Publication license

Publication series

Hohenheim discussion papers in business, economics and social sciences; 2016,06

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Standardized keywords (GND)

Sustainable Development Goals

BibTeX

@techreport{Baudy2016, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6030}, author = {Baudy, Philipp and Cords, Dario}, title = {Deregulation of temporary agency employment in a unionized economy : does this really lead to a substitution of regular employment}, year = {2016}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }
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