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The Growth of Temporary Services Work

Author Info

Listed author(s):
  • Lewis M. Segal
  • Daniel G. Sullivan

Abstract

Temporary services employment grew rapidly over the past several decades and now accounts for a sizable fraction of aggregate employment. The authors use Current Population Survey data to examine the changing nature of temporary work and discuss explanations for its growth. Temps are no longer overwhelmingly female or limited to clerical occupations. They have less labor market security than permanent workers, being prone to more unemployment and more underemployment. Few, however, are in temp positions a year later and the majority transition to permanent employment. Temp wages are approximately 20 percent below permanent workers, but individual and job characteristics explain approximately two-thirds of the gap.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.11.2.117
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Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 11 (1997)
Issue (Month): 2 (Spring)
Pages: 117-136

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Handle: RePEc:aea:jecper:v:11:y:1997:i:2:p:117-36
Note: DOI: 10.1257/jep.11.2.117
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Find related papers by JEL classification:
  • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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  1. Donald S. Allen, 1995. "Changes in inventory management and the business cycle," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 17-26.
  2. Freeman, Richard B, 1984. "Longitudinal Analyses of the Effects of Trade Unions," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 1-26, January.
  3. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
  4. McKinley L. Blackburn & David E. Bloom & Richard B. Freeman, 1989. "The Declining Economic Position of Less-Skilled American Males," NBER Working Papers 3186, National Bureau of Economic Research, Inc.
  5. Garth Mangum & Donald Mayall & Kristin Nelson, 1985. "The Temporary Help Industry: A Response to the Dual Internal Labor Market," ILR Review, Cornell University, ILR School, vol. 38(4), pages 599-611, July.
  6. Alan B. Krueger, 1991. "The Evolution of Unjust-Dismissal Legislation in the United States," ILR Review, Cornell University, ILR School, vol. 44(4), pages 644-660, July.
  7. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
  8. Thomas H. Klier, 1996. "Assessing the Midwest economy--a longer view," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Jul.
  9. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters,in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290 National Bureau of Economic Research, Inc.
  10. Brian Motley, 1996. "Recent developments in labor force participation," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue may24.
  11. Finis Welch, 1993. "Matching the Current Population Surveys," Stata Technical Bulletin, StataCorp LP, vol. 2(12).
  12. Lewis M. Segal & Daniel G. Sullivan, 1995. "The temporary labor force," Economic Perspectives, Federal Reserve Bank of Chicago, issue Mar, pages 2-19.
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