Welfare to Temporary Work: Implications for Labor Market Outcomes
AbstractRecent welfare reforms are prompting some state and local welfare agencies to use temporary help service firms to help place welfare recipients into jobs. Concerns have arisen that these jobs are more likely to pay low wages, provide fewer benefits, and offer less stability. We explore the effects of temporary help firms on the labor market outcomes of welfare recipients by looking at the characteristics of welfare recipients who go to work for temporary service firms and by examining their subsequent employment and welfare dynamics. We find that although welfare recipients who go to work for temporary help service firms have lower initial wages they experience faster subsequent wage growth. Two years later, their wages are only slightly below workers who initially had jobs in other sectors, and they are no more likely to be unemployed and are only slightly more likely to remain on welfare.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 584.
Length: 47 pages
Date of creation: Sep 2002
Date of revision:
Publication status: published in: Review of Economics and Statistics, 2005, 87 (1), 154-173
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Other versions of this item:
- Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2005. "Welfare to Temporary Work: Implications for Labor Market Outcomes," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 154-173, February.
- Peter R. Mueser & Carolyn J. Heinrich & Kenneth Troske, 2003. "Welfare to Temporary Work: Implications for Labor Market Outcomes," Working Papers, Department of Economics, University of Missouri 0308, Department of Economics, University of Missouri.
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- J0 - Labor and Demographic Economics - - General
- J4 - Labor and Demographic Economics - - Particular Labor Markets
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