This paper focuses upon the effect of Temporary Help Agencies (THAs) on occupational mobility through a comparison of the job-to-job upgrading chances of THA and non-THA workers. A screening approach to the role of these labor “brokers” suggests that agency workers can expect greater upgrading chances between two different occupations. Results obtained from a sample of Spanish workers show that working through these intermediaries allows workers in intermediate occupational levels to avoid occupational demotions more easily than non-THA ones. Moreover, THAs improve the probability for high-skilled workers of achieving a permanent contract. The empirical analysis demonstrates that the existence of self-selection is an important explanation for increased occupational mobility among THA workers in Spain.
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Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number
wb034110.
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