The study focuses on the question of whether productivity estimates are biased due to the emergence of a new input that is usually omitted: temporary agency worker (TAW). The study analyzes labor productivity and TFP by means of a structural approach using a representative dataset of German manufacturing firms. The empirical results show, once TAW is taken into account, that: i) labor productivity in most manufacturing sectors is significantly lower; ii) average TFP differs significantly in most sectors; but iii) the coefficients for regular labor are not significantly different between estimations with and without TAW.
Topics: Productivity, Business cycles, Education, Labor and employment
JEL-Classification: D24;J24;L24;L60
Keywords: Temporary agency work, total factor productivity, labor productivity, omitted variable bias, structural productivity estimation
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/126105