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Welfare to Temporary Work: Implications for Labor Market Outcomes

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  • Carolyn J. Heinrich

    (University of Wisconsin-Madison)

  • Peter R. Mueser

    (University of Missouri-Columbia)

  • Kenneth R. Troske

    (University of Missouri-Columbia and IZA)

Abstract

We explore the effects of temporary help employment on welfare recipients' subsequent employment and welfare dynamics. We find that any employment-in temporary help services or other sectors-yields substantial benefits compared to no employment. Although welfare recipients who go to work for temporary help service firms have lower initial wages than those with jobs in other sectors, they experience faster subsequent wage growth. Two years later, they are no less likely to be employed, their wages are close to those of other workers, and they are only slightly more likely to remain on welfare. © 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 87 (2005)
Issue (Month): 1 (February)
Pages: 154-173

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Handle: RePEc:tpr:restat:v:87:y:2005:i:1:p:154-173

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  1. Susan N. Houseman & Anne E. Polivka, 1999. "The Implications of Flexible Staffing Arrangements for Job Stability," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 99-56, W.E. Upjohn Institute for Employment Research.
  2. Lewis M. Segal & Daniel G. Sullivan, 1997. "Temporary services employment durations: evidence from state UI data," Working Paper Series, Macroeconomic Issues, Federal Reserve Bank of Chicago WP-97-23, Federal Reserve Bank of Chicago.
  3. Michael D. S. Morris & Alexander Vekker, 2001. "An Alternative Look at Temporary Workers, Their Choices, and the Growth in Temporary Employment," Journal of Labor Research, Transaction Publishers, Transaction Publishers, vol. 22(2), pages 373-390, April.
  4. Timothy J. Bartik, 1997. "Short-Term Employment Persistence for Welfare Recipients: The "Effects" of Wages, Industry, Occupation and Firm," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 97-46, W.E. Upjohn Institute for Employment Research.
  5. Joseph Gyourko & Joseph Tracy, 1986. "An Analysis of Public and Private Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," NBER Working Papers 1920, National Bureau of Economic Research, Inc.
  6. Lewis Segal & Daniel Sullivan, 1996. "The growth of temporary services work," Working Paper Series, Macroeconomic Issues, Federal Reserve Bank of Chicago WP-96-26, Federal Reserve Bank of Chicago.
  7. 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.
  8. 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.
  9. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, Econometric Society, vol. 51(2), pages 507-12, March.
  10. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," NBER Working Papers 6699, National Bureau of Economic Research, Inc.
  11. V. J. Hotz & J. K. Scholz, . "Measuring Employment and Income for Low-Income Populations with Administrative and Survey Data," Institute for Research on Poverty Discussion Papers, University of Wisconsin Institute for Research on Poverty 1224-01, University of Wisconsin Institute for Research on Poverty.
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