Date Added: Oct 2009
A firm's decision to employ agency workers may be perceived as a replacement of directly employed workers or as way to curb union power, which trade unions would oppose. Alternatively, trade unions may encourage the (temporary) employment of agency workers in a firm, if they manage to bargain higher wages for their members. The authors estimate the relationship between hiring agency workers and trade union activity at the workplace, in particular, the type of collective bargaining agreements. They use British data from the Workplace Employment Relations Surveys (WERS) of 1998 and 2004.