Explanatory factors for firms’ use of temporary agency work in Germany

SummaryThe use of temporary agency work is becoming more important for firms as it enables them to increase flexibility. Therefore, it is highly relevant to have a thorough understanding of the explanatory factors behind its use. Most recent literature focuses on the assumed cost effect of temporary agency work. But a few indicators show that this effect does not predominantly trigger firms’ use of temporary agency work. We support this thesis by highlighting new empirical evidence from the German market.