Are temporary work agencies stepping-stones into regular employment?
AbstractThis paper estimates the causal effect of temporary work agency (TWA) employment on the subsequent probability of employment in the regular labor market. The main purpose is to estimate the stepping-stone effect separately for natives and immigrants, where the latter group potentially benefits the most from TWA employment. Since no quasi-experiment is available, individual Differences-in-Differences and matching is used to deal with the potential selection bias. The results point at a negative regular employment effect, which slowly fades away over a couple of years. Thus no evidence of a stepping-stone effect is found. When conditioning on immigrants this negative effect is absent. A long-run significant effect is found on overall employment probability (including TWA employment), there is even a long-run positive effect on annual earnings (mainly driven by women). Unemployment probabilities decreased, however the results in the estimation were less stable over time compared to the employment estimates, suggesting that the TWAs might keep individuals from exiting the labor market. Stratification on gender showed that the negative regular employment effect on women persisted for two more years compared to men.
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Bibliographic InfoPaper provided by Stockholm University Linnaeus Center for Integration Studies - SULCIS in its series SULCIS Working Papers with number 2012:3.
Length: 32 pages
Date of creation: 12 Sep 2012
Date of revision:
Contact details of provider:
Postal: Stockholm University Linnaeus Center for Integration Studies - SULCIS, Stockholm University, S-10691 Stockholm, Sweden
Web page: http://www.su.se/sulcis
More information through EDIRC
Temporary work agencies; stepping-stone; labor market; matching;
Find related papers by JEL classification:
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-30 (All new papers)
- NEP-DEM-2012-09-30 (Demographic Economics)
- NEP-LAB-2012-09-30 (Labour Economics)
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Temp work does not lead to full-time work
by Economic Logician in Economic Logic on 2012-10-19 15:04:00
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