Temporary Work in Turbulent Times: The Swedish Experience



20

Figure 4.2. Flows from and to unemployment during a recession
(absolute deviations compared to the levels in the reference case in units of 100 workers).

80

60

40

20
0
-20

A. Inflows to unemployment.


3  7 11 15 19 23 27 31 35 39 43 47 51

B. Outflows from unemployment.


5. What Caused the Rise in Temporary Work?

5.1 Changes in Legislation

What has caused the rise in temporary work in Sweden during the 1990s? We distinguish
between three broad hypotheses, beginning with changes in legislation. As have been
documented above, some regulatory changes have taken place during the 1990s. The 1994
reform involved an increase in the duration of probationary employment from sex to twelve
months. However, this reform must have had at most a marginal effect on the regulations facing



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