Recalls (also known as 'temporary layoffs') are used as employment strategy in the German labor market for handling fluctuations
in the need of labor. Susanne Edler presents research that reveals that employment relations after recalls are less protected
by labor market regulations and more exposed to the competitive market processes than continuously employed workers that grant
wage premiums (rents) due to their higher shielding from the competitive labor market. However, compared to other discontinuous
employment relations temporary layoffs can be the better alternative since employers as well as employees make use of their
transaction-specific investments in human capital and thereby generate 'composite rents.'