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Baumgarten, Daniel and Kvasnicka, Michael (April 2017): Temporary agency work and the Great Recession. In: Journal of Economic Behavior & Organization, Vol. 136: pp. 29-44

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We investigate with German data how the use of temporary agency work has helped establishments to manage the economic and financial crisis in 2008/09. We examine the (regular) workforce development, use of short-time work, and business performance of establishments that made differential use of temporary agency work prior to the crisis. Overall, our results suggest that establishments with a greater use of temporary agency work coped better with the sharp decline in demand and made less frequent use of government-sponsored short-time work schemes.

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