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Identifying the Substitution Effect of Temporary Agency Employment

URN to cite this document:
urn:nbn:de:bvb:355-epub-235979
Jahn, Elke ; Weber, Enzo
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Date of publication of this fulltext: 20 Mar 2012 11:29


Abstract

This paper fills a gap in the literature by investigating whether temporary agency employment substitutes regular employment. To take into account the interaction between the two employment forms, we identify a SVAR model with correlated innovations by volatility regimes. We show that a positive shock to temporary agency employment increases overall employment, but also leads to substitution of regular jobs.


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