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The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data

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  • Inga Laß
  • Mark Wooden

Abstract

This study uses panel data for Australia to estimate the wage differential between workers in temporary jobs and workers in permanent jobs. It is the first study to use unconditional quantile regression methods in combination with fixed effects to examine how this gap varies over the entire wage distribution. While the wages of fixed‐term contract workers are found to be similar to those of permanent workers, low‐paid casual workers experience a wage penalty and high‐paid casual workers a wage premium compared to their permanent counterparts. Temporary agency workers also usually receive a wage premium, which is particularly large for the most well paid.

Suggested Citation

  • Inga Laß & Mark Wooden, 2019. "The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 453-478, September.
  • Handle: RePEc:bla:brjirl:v:57:y:2019:i:3:p:453-478
    DOI: 10.1111/bjir.12458
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    References listed on IDEAS

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    Cited by:

    1. Marek Gora & Piotr Lewandowski & Maciej Lis, 2017. "Temporary employment boom in Poland – a job quality vs. quantity trade-off?," IBS Working Papers 04/2017, Instytut Badan Strukturalnych.
    2. Inga Laß & Mark Wooden, 2020. "Non‐Standard Employment and Wage Growth in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(3), pages 325-342, September.
    3. Duman, Anil, 2020. "Non-Standard Employment and Wage Differences across Gender: a quantile regression approach," GLO Discussion Paper Series 664, Global Labor Organization (GLO).
    4. Bill Cochrane & Gail Pacheco & Chao Li, 2017. "Temporary-Permanent Wage Gap: Does Type of Work and Location in Distribution Matter?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 20(2), pages 125-147.
    5. Paolo Barbieri & Giorgio Cutuli, 2018. "Dual Labour Market Intermediaries in Italy: How to Lay off “Lemons”—Thereby Creating a Problem of Adverse Selection," De Economist, Springer, vol. 166(4), pages 477-502, December.
    6. Farina, Egidio & Green, Colin P. & McVicar, Duncan, 2020. "Are Estimates of Non-Standard Employment Wage Penalties Robust to Different Wage Measures? The Case of Zero Hours Contracts in the UK," IZA Discussion Papers 13548, Institute of Labor Economics (IZA).
    7. Albanese, Andrea & Gallo, Giovanni, 2020. "Buy flexible, pay more: The role of temporary contracts on wage inequality," Labour Economics, Elsevier, vol. 64(C).
    8. Egidio Farina & Colin Green & Duncan McVicar, 2020. "Zero Hours Contracts and Their Growth," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 507-531, September.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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