French layoff restrictions drove firms to temporary-help and loaned-worker arrangements

Evidence

This form of subcontracting is encouraged by the rigid restrictions French legislation places on laying off workers. During the 1970s these restrictions spawned a proliferation of temporary help agencies whose employees do not benefit from the same protective legislation. Another common arrangement is the use of so-called intérimaires, permanent employees of one firm with an excess supply who are loaned on a temporary basis to a firm facing a capacity constraint. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2487

Categorization

Category: Causal Relationships

• ADDENDUM: Parallels how rigid constraints force creative workarounds — resonates with how Blindness’ sudden constraint of sightlessness forces improvised social arrangements.