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Temporary Help Agencies and Occupational Mobility

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

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.

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Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 67 (2005)
Issue (Month): 2 (04)
Pages: 163-180

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Handle: RePEc:bla:obuest:v:67:y:2005:i:2:p:163-180
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  1. 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.
  2. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1409-1448, November.
  3. Katharine G. Abraham, 1988. "Flexible Staffing Arrangements and Employers' Short-Term Adjustment Strategies," NBER Working Papers 2617, National Bureau of Economic Research, Inc.
  4. J. Ignacio García-Pérez & Fernando Muñoz-Bullón, 2003. "The Nineties In Spain: Too Much Flexibility In The Youth Labour Market?," Business Economics Working Papers wb030302, Universidad Carlos III, Departamento de Economía de la Empresa.
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