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human capital management, leads to the question who invests in the human capital of
temporary agency workers. Therefore, we investigate the parties' incentives to invest and
review the small number of existing empirical works. We show that there are incentives for
all parties to invest even in general human capital, using the human capital theory and
the concept of psychological contracts. Clients' incentives to invest crucially depend on
their motives for using temporary agency work. Additionally, we analyze the evolving
externalities of the investments and draw some conclusions concerning the implications for
the further training of temporary agency workers.
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