relevant. JEL Classification: C14, C52, D24, J24, J41 Keywords: temporary workers, workers’ effort, firms’ TFP … to this relationship, we start by proposing a very simple model in which temporary workers choose the level of job effort … prediction of our model. Additionally, we find that firms with a large proportion of temporary workers are significa- tively less …

temporary workers is associated with the nature of their output fluctuations and other plant characteristics. We find that … plants tend to hire temporary workers when their output can be expected to fall, a result consistent with the notion that … firms use temporary workers to reduce costs associated with dismissing permanent employees. In addition, we find that plants …