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What does a temporary help service job offer? Empirical suggestions from a Japanese survey

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  • Okudaira, Hiroko
  • Ohtake, Fumio
  • Kume, Koichi
  • Tsuru, Kotaro

Abstract

The aim of this paper is to test whether or not a temporary help service (THS) job benefits workers in Japan. By applying the average treatment effect on the treated estimation and its sensitivity tests to the Japanese survey data, we obtained the following findings. First, we observed no evidence that THS work has a positive impact on the probability of being permanently employed in subsequent waves, when compared to directly hired part-time jobs. Rather, THS workers suffer from a significantly higher probability of being unemployed, at least at some point over the next 2years, than directly hired part-time workers do. At the same time, however, we also found weak evidence that THS workers have a lower probability of being unemployed than those who were originally unemployed. We conclude that THS work in Japan has failed to provide a stepping stone to permanent employment, although it may have provided employment opportunities to those who were otherwise unemployed.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 28 (2013)
Issue (Month): C ()
Pages: 37-68

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Handle: RePEc:eee:jjieco:v:28:y:2013:i:c:p:37-68

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Web page: http://www.elsevier.com/locate/inca/622903

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Keywords: Temporary help service job; ATT estimation; Stepping-stone;

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References

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  1. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, Econometric Society, vol. 74(1), pages 235-267, 01.
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  4. Ichino, Andrea & Mealli, Fabrizia & Nannicini, Tommaso, 2006. "From Temporary Help Jobs to Permanent Employment: What Can We Learn from Matching Estimators and their Sensitivity?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5736, C.E.P.R. Discussion Papers.
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  6. Peter R. Mueser & Kenneth R. Troske & Carolyn J. Heinrich, 2007. "The Role of Temporary Help Employment in Low-wage Worker Advancement," Working Papers, Department of Economics, University of Missouri 0719, Department of Economics, University of Missouri.
  7. Miet Maertens & Liesbeth Colen & Johan F. M. Swinnen, 2011. "Globalisation and poverty in Senegal: a worst case scenario?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(1), pages 31-54, March.
  8. Zijl, Marloes & van den Berg, Gerard J. & Heyma, Arjan, 2004. "Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration until Regular Work," IZA Discussion Papers 1241, Institute for the Study of Labor (IZA).
  9. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  10. Fredrik Andersson & Harry J. Holzer & Julia Lane, 2009. "Temporary Help Agencies and the Advancement Prospects of Low Earners," NBER Chapters, National Bureau of Economic Research, Inc, in: Studies of Labor Market Intermediation, pages 373-398 National Bureau of Economic Research, Inc.
  11. Thomas Cornelißen & Oliver Himmler & Tobias Koenig, 2012. "Fairness Spillovers – The Case of Taxation," Working Paper Series of the Max Planck Institute for Research on Collective Goods, Max Planck Institute for Research on Collective Goods 2012_17, Max Planck Institute for Research on Collective Goods.
  12. Heinrich, Carolyn J. & Mueser, Peter R. & Troske, Kenneth, 2002. "Welfare to Temporary Work: Implications for Labor Market Outcomes," IZA Discussion Papers 584, Institute for the Study of Labor (IZA).
  13. David H. Autor & Susan N. Houseman & Sari Pekkala Kerr, 2012. "The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach," NBER Working Papers 17972, National Bureau of Economic Research, Inc.
  14. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, Springer, vol. 29(2), pages 138-161, June.
  15. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(480), pages F189-F213, June.
  16. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  17. Michael Kvasnicka, 2008. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Working Papers 13843, National Bureau of Economic Research, Inc.
  18. Julen ESTEBAN-PRETEL & NAKAJIMA Ryo & TANAKA Ryuichi, 2009. "Are Contingent Jobs Dead Ends or Stepping Stones to Regular Jobs? Evidence from a Structural Estimation," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 09002, Research Institute of Economy, Trade and Industry (RIETI).
  19. Julia Lane & Kelly S. Mikelson & Pat Sharkey & Doug Wissoker, 2003. "Pathways to work for low-income workers: The effect of work in the temporary help industry," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 22(4), pages 581-598.
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Cited by:
  1. Fumio Ohtake & SunYoun Lee, . "Procrastinators and hyperbolic discounters: Probability of transition from temporary to full-time employment," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0841, Institute of Social and Economic Research, Osaka University.

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