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Economic Perspectives, 27, 2nd, No. 2, May 2003
Temporary help services and the volatility of industry output
To gain a better understanding of how fluctuations in output influence firms’ decision to hire temporary workers, the authors examine the relationship between output volatility and the use of temporary labor. They find that, all things being equal, temporary employment is higher in states with more volatile industries and lower in states with a relatively high degree of comovement of industry output fluctuations.


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