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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 evidence that THS work negatively impacts the probability of permanent employment in subsequent waves, when compared to directly hired part-time employment. Second, THS workers earn a significantly higher hourly wage than those originally unemployed. For those seeking permanent employment in particular, THS work provides a quick way to make a living for up to two years. We conclude that THS work in Japan has provided a means to obtaining quick earnings but has not offered a stepping-stone to permanent employment.

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Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 11077.

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Length: 49 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:eti:dpaper:11077

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  1. 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).
  2. Lewis M. Segal & Daniel G. Sullivan, 1997. "The Growth of Temporary Services Work," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 117-136, Spring.
  3. 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 2012_17, Max Planck Institute for Research on Collective Goods.
  4. David H. Autor & Susan N. Houseman, 2010. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 96-128, July.
  5. James J. Heckman & Petra E. Todd, 2009. "A note on adapting propensity score matching and selection models to choice based samples," Econometrics Journal, Royal Economic Society, vol. 12(s1), pages S230-S234, 01.
  6. Fredrik Andersson & Harry J. Holzer & Julia Lane, 2009. "Temporary Help Agencies and the Advancement Prospects of Low Earners," NBER Chapters, in: Studies of Labor Market Intermediation, pages 373-398 National Bureau of Economic Research, Inc.
  7. Miet Maertens & Liesbeth Colen & Johan F.M. Swinnen, 2008. "Globalization and Poverty in Senegal: A Worst Case Scenario?," LICOS Discussion Papers 21708, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  8. Tommaso Nannicini, 2006. "A Simulation-Based Sensitivity Analysis for Matching Estimators," North American Stata Users' Group Meetings 2006 6, Stata Users Group.
  9. 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.
  10. 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 5736, C.E.P.R. Discussion Papers.
  11. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, 01.
  12. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1409-1448, November.
  13. 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 09002, Research Institute of Economy, Trade and Industry (RIETI).
  14. Peter R. Mueser & Kenneth R. Troske & Carolyn J. Heinrich, 2007. "The Role of Temporary Help Employment in Low-wage Worker Advancement," Working Papers 0719, Department of Economics, University of Missouri.
  15. 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).
  16. 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., vol. 22(4), pages 581-598.
  17. 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, vol. 64(4), pages 605-54, October.
  18. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  19. 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, vol. 29(2), pages 138-161, June.
  20. Michael Kvasnicka, 2009. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Chapters, in: Studies of Labor Market Intermediation, pages 335-372 National Bureau of Economic Research, Inc.
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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 0841, Institute of Social and Economic Research, Osaka University.

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