Competition among temporary work agencies leads to overconfidence and misaligned incentives.
Three papers explore the dynamics of temporary work agencies (TWAs) in filling job vacancies. The first paper shows that TWAs become overconfident in their abilities due to competition. The second paper highlights how TWAs may delay finding the best worker to maximize profits. The third paper compares the efficiency of TWAs that plan ahead versus those that focus on immediate results, showing that planning ahead can lead to delayed efforts. Overall, the research emphasizes the importance of aligning incentives in the TWA sector to ensure efficient job placements.