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2008•SSRN Electronic JournalOpen access

The Emergence of Temporary Work Agencies

Michael Neugart, Donald Storrie

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Abstract

A striking feature of OECD labour markets in the 1990s has been the very rapid increase of temporary agency work. We augment the equilibrium unemployment model as developed by Pissarides and Mortensen with temporary work agencies in order to show that the improvement in the matching efficiency of agencies led to the emergence and growth of temporary agency work. We also find that temporary agency work does not necessarily crowd-out other jobs.

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What this paper is about

A striking feature of OECD labour markets in the 1990s has been the very rapid increase of temporary agency work. We augment the equilibrium unemployment model as developed by Pissarides and Mortensen with temporary work agencies in order to show that the improvement in the matching efficiency of agencies led to the emergence and growth of temporary agency work. We also find that temporary agency work does not necessarily crowd-out other jobs.

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Available abstract

A striking feature of OECD labour markets in the 1990s has been the very rapid increase of temporary agency work. We augment the equilibrium unemployment model as developed by Pissarides and Mortensen with temporary work agencies in order to show that the improvement in the matching efficiency of agencies led to the emergence and growth of temporary agency work. We also find that temporary agency work does not necessarily crowd-out other jobs.

Key concepts: Agency (philosophy), Temporary work, Work (physics), Unemployment, Matching (statistics), Labour economics, Order (exchange), Economics

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