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The Role of Temporary Help Agencies in Facilitating Temp-to-Perm Transitions

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Author Info

  • Amuedo-Dorantes, Catalina

    ()
    (San Diego State University)

  • Malo, Miguel

    ()
    (Universidad de Salamanca)

  • Muñoz-Bullón, Fernando

    ()
    (Universidad Carlos III de Madrid)

Abstract

This paper evaluates the impact of agency work on temporary workers’ posterior likelihood of being hired on a permanent basis. We use administrative data on two groups of temporary workers for whom we have complete work histories since they are first observed in 1998 until the year 2004. One group consists of workers employed through a temporary help agency (THA) at some point during the seven year period under examination (treated group). The other group is composed of individuals employed as direct-hire temps at some point between 1998 and the year 2004, but never via a THA (control group). Using propensity score matching methods, we find that agency workers endure a lower likelihood of being hired on a permanent basis following their temporary assignment than their direct-hire counterparts.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2177.

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Length: 43 pages
Date of creation: Jun 2006
Date of revision:
Publication status: published in: Journal of Labor Research, 2008, 29 (2), 138-161
Handle: RePEc:iza:izadps:dp2177

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Related research

Keywords: temporary help agency; temporary employment; permanent employment; Spain;

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References

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  1. Susan N. Houseman & Anne E. Polivka, 1999. "The Implications of Flexible Staffing Arrangements for Job Stability," Upjohn Working Papers and Journal Articles 99-56, W.E. Upjohn Institute for Employment Research.
  2. Katharine G. Abraham & Susan K. Taylor, 1993. "Firms' Use of Outside Contractors: Theory and Evidence," NBER Working Papers 4468, National Bureau of Economic Research, Inc.
  3. Susan N. Houseman, 2001. "Why employers use flexible staffing arrangements: Evidence from an establishment survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
  4. David Card & Daniel Sullivan, 1987. "Measuring the Effect of Subsidized Training Programs on Movements In andOut of Employment," NBER Working Papers 2173, National Bureau of Economic Research, Inc.
  5. David H. Autor & Susan N. Houseman, . "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," Upjohn Working Papers and Journal Articles dhasnh2010, W.E. Upjohn Institute for Employment Research.
  6. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
  7. Catalina Amuedo-Dorantes, 2000. "Work transitions into and out of involuntary temporary employment in a segmented market: Evidence from Spain," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
  8. J. Ignacio García-Pérez & Fernando Muñoz-Bullón, 2003. "Temporary Help Agencies And Occupational Mobility," Business Economics Working Papers wb034110, Universidad Carlos III, Departamento de Economía de la Empresa.
  9. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2005. "Temporary Work Agencies in Italy: A Springboard Toward Permanent Employment?," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(1), pages 1-27, September.
  10. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  11. Michael Kvasnicka, 2005. "Does Temporary Agency Work Provide a Stepping Stone to Regular Employment?," Labor and Demography 0510005, EconWPA.
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Citations

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Cited by:
  1. Bart Cockx & Matteo Picchio, 2009. "Are Short-Lived Jobs Stepping Stones to Long-Lasting Jobs?," CESifo Working Paper Series 2569, CESifo Group Munich.
  2. Niebuhr, Annekatrin & Buch, Tanja, 2013. "Wage effects of labor market entry via temporary work agency employment," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79818, Verein für Socialpolitik / German Economic Association.
  3. 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.
  4. Böheim, René & Cardoso, Ana Rute, 2007. "Temporary Agency Work in Portugal, 1995–2000," IZA Discussion Papers 3144, Institute for the Study of Labor (IZA).
  5. Carlos García-Serrano & Virginia Hernanz & Luis Toharia, 2010. "Mind the Gap, Please! The Effect of Temporary Help Agencies on the Consequences of Work Accidents," Journal of Labor Research, Springer, vol. 31(2), pages 162-182, June.
  6. H Ingham & M Ingham, 2010. "Temporary Work in Poland: Who Gets the Jobs?," Working Papers 604645, Lancaster University Management School, Economics Department.
  7. René Böheim & Ana Rute Cardoso, 2009. "Temporary Help Services Employment in Portugal, 1995-2000," NBER Chapters, in: Studies of Labor Market Intermediation, pages 309-334 National Bureau of Economic Research, Inc.

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