TRAINING PROVISION AND REGULATION: AN ANALYSIS OF THE TEMPORARY HELP INDUSTRY

This paper studies from an economic viewpoint the juridical rationality of mandatory training provisions on Temporary Help Agencies through the Spanish Law 14/94. No positive relationship is found between the improvement in Temporary Help Agencies’ added value levels and their investments in temps’ training. In analyzing this specific provision of Spanish Labor Law we adopt a positive focus with the aim of finding economic causes for its adoption and of explaining its effect on the functioning of the labour intermediation sector. The application of the non-market failure theory leads us to conclude that an efficient use of this legal prescription is limited. The investigated issue is of relevance in order to understand the economic effects of regulation from a Law and Economics perspective.