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The effect of temporary help jobs on employment volatility

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  • Elke Jahn
  • Enzo Weber

Abstract

This study investigates the impact of temporary agency employment on employment volatility outside the sector. Making use of econometric volatility models, we find that enhancing numerical flexibility by temporary agency employment decreases employment volatility of incumbent workers. However, not all subgroups are benefitting equally. While prime-age permanent workers gain considerably from higher flexibility, young workers, migrants and low-skilled workers not only are overrepresented among the temps but also do not gain when employed outside the sector.

Suggested Citation

  • Elke Jahn & Enzo Weber, 2016. "The effect of temporary help jobs on employment volatility," Canadian Journal of Economics, Canadian Economics Association, vol. 49(1), pages 412-427, February.
  • Handle: RePEc:cje:issued:v:49:y:2016:i:1:p:412-427
    DOI: 10.1111/caje.12202
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    3. Alejandro Micco & Pablo Muñoz-Henríquez, 2018. "The Impact of Extended Employment Protection Laws on the Demand for Temporary Agency Workers," Working Papers wp463, University of Chile, Department of Economics.

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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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