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Temporary Help Agencies and Occupational Mobility

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  • J. Ignacio García-Pérez
  • Fernando Muñoz-Bullón

Abstract

This paper analyses the effects of Temporary Help Agencies (THA) on occupational mobility by performing an empirical comparison of the job-to-job upgrading chances of agency and regular (non-agency) workers in Spain. We estimate a switching regression model to allow for self-selection into agency work because of, for instance, more motivated workers being more likely to search for jobs through a THA. We find evidence in favour of the existence of self-selection in all qualification groups considered. Concerning mobility, we find that agency workers in intermediate qualification levels are less likely to experience demotions than regular workers. THA increase the probability of high-skilled workers achieving a permanent contract in Spain. Copyright 2005 Blackwell Publishing Ltd.

Suggested Citation

  • J. Ignacio García-Pérez & Fernando Muñoz-Bullón, 2005. "Temporary Help Agencies and Occupational Mobility," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(2), pages 163-180, April.
  • Handle: RePEc:bla:obuest:v:67:y:2005:i:2:p:163-180
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    References listed on IDEAS

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    1. Muñoz-Bullón, Fernando & García-Pérez, J. Ignacio, 2003. "The nineties in Spain: too much flexibility in the youth labour market?," DEE - Working Papers. Business Economics. WB wb030302, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    2. Katharine G. Abraham, 1988. "Flexible Staffing Arrangements and Employers' Short-Term Adjustment Strategies," NBER Working Papers 2617, National Bureau of Economic Research, Inc.
    3. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1409-1448.
    4. Lewis M. Segal & Daniel G. Sullivan, 1997. "The Growth of Temporary Services Work," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 117-136, Spring.
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    Cited by:

    1. Moral De Blas, Alfonso & Martín-Román, Ángel & Rodríguez Caballero, Juan Carlos, 2013. "El papel de las ETTs en la reducción del riesgo moral asociado al seguro por accidentes de trabajo: El caso de España/The Role of the TWAs in the Reduction of Moral Hazard in Workplace Accident Insura," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 497-522, Septiembr.
    2. Michael Kvasnicka, 2005. "Does Temporary Agency Work Provide a Stepping Stone to Regular Employment?," SFB 649 Discussion Papers SFB649DP2005-031, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    3. Addabbo, Tindara & Favaro, Donata, 2010. "The flexibility penalty in a long-term perspective," MPRA Paper 21064, University Library of Munich, Germany.
    4. Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2009. "The Role of Temporary Help Employment in Low-Wage Worker Advancement," NBER Chapters,in: Studies of Labor Market Intermediation, pages 399-436 National Bureau of Economic Research, Inc.
    5. Muñoz-Bullón, Fernando & Arranz, José M. & Alba, Alfonso, 2006. "Unemployment duration, unemployment benefits and recalls," DEE - Working Papers. Business Economics. WB wb066218, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    6. 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.
    7. Carlo Gianelle, 2014. "Labor market intermediaries make the world smaller," Journal of Evolutionary Economics, Springer, vol. 24(5), pages 951-981, November.
    8. Alba-Ramirez, Alfonso & Arranz, Jose M. & Munoz-Bullon, Fernando, 2007. "Exits from unemployment: Recall or new job," Labour Economics, Elsevier, vol. 14(5), pages 788-810, October.
    9. Michael Kvasnicka, 2009. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Chapters,in: Studies of Labor Market Intermediation, pages 335-372 National Bureau of Economic Research, Inc.
    10. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June.
    11. Amuedo-Dorantes, Catalina & Malo, Miguel & Muñoz-Bullón, Fernando, 2006. "The Role of Temporary Help Agencies in Facilitating Temp-to-Perm Transitions," IZA Discussion Papers 2177, Institute for the Study of Labor (IZA).
    12. Susan N. Houseman, 2014. "Temporary agency work," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-27, May.

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