The Effect of Employing Temporary Workers on Efficiency: Evidence From a Meta-Frontier Analysis
This study examines the impact of employing temporary workers on technical efficiency (TE) by employing stochastic frontier analysis (SFA) and meta-frontier analysis (MFA). These two statistical methods yield slightly different, yet empirically meaningful, results. SFA—the more conventional methodol...
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| Main Authors: | , , |
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| Format: | article |
| Language: | EN |
| Published: |
SAGE Publishing
2021
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| Subjects: | |
| Online Access: | https://doaj.org/article/3c0dfdbde170442eb36c893f051c27e8 |
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| Summary: | This study examines the impact of employing temporary workers on technical efficiency (TE) by employing stochastic frontier analysis (SFA) and meta-frontier analysis (MFA). These two statistical methods yield slightly different, yet empirically meaningful, results. SFA—the more conventional methodology for conducting efficiency analysis—confirms that firms with temporary workers show a somewhat lower level of TE; while MFA, which allows a comparison of TE across groups with heterogeneous technologies, reveals that firms hiring temporary workers are technologically less efficient and have a more pronounced relative gap in efficiency. With the application of MFA, it was observed that firms hiring only temporary workers come farther to the meta-frontier than their counterparts. |
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