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The effect of temporary help jobs on employment volatility

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  • Elke Jahn
  • Enzo Weber

Abstract

This study investigates the impact of temporary agency employment on employment volatility outside the sector. Making use of econometric volatility models, we find that enhancing numerical flexibility by temporary agency employment decreases employment volatility of incumbent workers. However, not all subgroups are benefitting equally. While prime‐age permanent workers gain considerably from higher flexibility, young workers, migrants and low‐skilled workers not only are overrepresented among the temps but also do not gain when employed outside the sector. L’effet des agences d’emplois temporaires sur la volatilité du niveau d’emploi. Ce texte étudie l’impact des agences d’emplois temporaires sur la volatilité de l’emploi en dehors du secteur. À l’aide de modèles économétriques de volatilité, on montre que l’accroissement de la flexibilité numérique par les agences d’emplois temporaires réduit la volatilité de l’emploi des travailleurs en place. Cependant tous les sous‐groupes ne bénéficient pas également. Alors que les employés permanents dans la fleur de l’âge bénéficient de la plus grande flexibilité, les jeunes travailleurs, les immigrants, et les travailleurs peu qualifiés ne sont pas seulement sur‐représentés dans ce bloc de travailleurs temporaires, mais ne gagnent pas non plus quand ils sont employés hors du secteur.

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  • Elke Jahn & Enzo Weber, 2016. "The effect of temporary help jobs on employment volatility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(1), pages 412-427, February.
  • Handle: RePEc:wly:canjec:v:49:y:2016:i:1:p:412-427
    DOI: 10.1111/caje.12202
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    2. Bachmann, Ronald & Martinez Flores, Fernanda & Rulff, Christian, 2022. "Die Lohnlücke in der Zeitarbeit: Eine empirische Analyse auf Grundlage von BA-Daten und der Verdienststrukturerhebung," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 262219.
    3. Baumgarten, Daniel & Kvasnicka, Michael, 2017. "Temporary agency work and the Great Recession," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 29-44.
    4. Kozo Kiyota & Toshiyuki Matsuura & Yoshio Higuchi, 2020. "Multinationals, intra‐firm trade and employment volatility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 982-1015, August.
    5. Bachmann, Ronald & Martinez Flores, Fernanda & Rulf, Christian, 2022. "Die Lohnlücke in der Zeitarbeit: Eine empirische Analyse auf Grundlage der Integrierten Erwerbsbiografien und der Verdienststrukturerhebung," RWI Materialien 153, RWI - Leibniz-Institut für Wirtschaftsforschung.
    6. Alejandro Micco & Pablo Muñoz-Henríquez, 2018. "The Impact of Extended Employment Protection Laws on the Demand for Temporary Agency Workers," Working Papers wp463, University of Chile, Department of Economics.

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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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