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Are Temporary Help Agencies Changing Mobility Patterns In The Spanish Labour Market?

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  • J.I. García-Pérez

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  • Fernando Muñoz-Bullón

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Abstract

This paper examines to what extent Temporary Help Agency intermediation in the labour market affects workers' transitions into and out of employment in the Spanish youth labour market throughout the nineties. Results obtained show that this intermediation presents a positive impact on the likelihood of leaving unemployment, although only for short-term unemployed individuals; at the same time, however, the employment hazard rate is substantially higher for agency workers. We also find that employment hazard rates were substantially affected in the 90's by the extensive use of fixed-term contracts, although the 1997 labour market reform is found to reduce this hazard rate. Finally, very young workers, women and those with lower qualification levels are more likely to be affected by higher labour turnover.

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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 wb035513.

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Date of creation: Oct 2003
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Handle: RePEc:cte:wbrepe:wb035513

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  1. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  2. J. Ignacio García Pérez & Fernando Muñoz Bullón, 2001. "Temporary help agencies and workers' occupational mobility," Economics Working Papers 554, Department of Economics and Business, Universitat Pompeu Fabra.
  3. Mortensen, Dale T., 1987. "Job search and labor market analysis," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 15, pages 849-919 Elsevier.
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  10. Hernanz, Virginia & Jimeno, Juan Francisco & Kugler, Adriana D., 2003. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labour Market Reforms," CEPR Discussion Papers 3724, C.E.P.R. Discussion Papers.
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  14. Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 361-81, Oct.-Dec..
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  16. Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1371-91, November.
  17. J. Ignacio García Pérez, 2001. "Non-stationary job search when jobs are not forever: A structural estimation," Economics Working Papers 556, Department of Economics and Business, Universitat Pompeu Fabra.
  18. Vishwanath, Tara, 1989. "Job Search, Stigma Effect, and Escape Rate from Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 487-502, October.
  19. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-66, September.
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Cited by:
  1. Jahn, Elke J. & Rosholm, Michael, 2010. "Looking beyond the bridge: How temporary agency employment affects labor market outcomes," IAB Discussion Paper 201009, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Miguel A. Malo & Fernando Munoz-Bullon, 2008. "Working career progress in the tourism industry: Temp-to-perm transitions in Spain," Business Economics Working Papers wb083510, Universidad Carlos III, Departamento de Economía de la Empresa.
  3. Antoni, Manfred & Jahn, Elke J., 2006. "Do changes in regulation affect employment duration in temporary work agencies?," Discussion Papers 44, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  4. Maite Blázquez Cuesta, 2008. "Low-wage Employment and Mobility in Spain," LABOUR, CEIS, vol. 22(s1), pages 115-146, 06.
  5. Jahn, Elke J. & Pozzoli, Dario, 2011. "Does the Sector Experience Affect the Pay Gap for Temporary Agency Workers?," IZA Discussion Papers 5837, Institute for the Study of Labor (IZA).
  6. Alfonso Alba-Ramirez & Jose Maria Arranz Muñoz & Fernando Muñoz-Bullon, 2006. "Unemployment Duration, Unemployment Benefits And Recalls," Business Economics Working Papers wb066218, Universidad Carlos III, Departamento de Economía de la Empresa.
  7. Jordi Amorós, Catalina & Manjón Antolín, Miguel C., 2013. "The Determinants of Urban (Un)employment Duration: Evidence from Barcelona," Working Papers 2072/211799, Universitat Rovira i Virgili, Department of Economics.

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