IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Looking beyond the bridge: The effect of temporary agency employment on labor market outcomes

  • Jahn, Elke J.
  • Rosholm, Michael

We perform a comprehensive analysis of the stepping-stone effect of temporary agency employment on unemployed workers. Using the timing-of-events approach, we investigate not only whether agency employment is a bridge into regular employment but also its effect on post-unemployment wages and job stability for unemployed Danish workers. We find evidence of large positive treatment effects, particularly for immigrants and for individuals considered less employable. Our results show that agency employment is in tendency effective in tight labor markets, where firms use agency employment primarily to screen potential candidates for regular posts. Finally, our results suggest that agency employment may improve subsequent match quality in terms of wages.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/pii/S0014292113001372
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 65 (2014)
Issue (Month): C ()
Pages: 108-125

as
in new window

Handle: RePEc:eee:eecrev:v:65:y:2014:i:c:p:108-125
Contact details of provider: Web page: http://www.elsevier.com/locate/eer

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  2. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2003. "The role of temporary agency employment in tight labor markets," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 105-127, October.
  3. Lewis Segal & Daniel Sullivan, 1996. "The growth of temporary services work," Working Paper Series, Macroeconomic Issues WP-96-26, Federal Reserve Bank of Chicago.
  4. Michael Kvasnicka, 2008. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Working Papers 13843, National Bureau of Economic Research, Inc.
  5. Cockx, B. & Picchio, M., 2010. "Are Short-Lived Jobs Stepping Stones to Long-Lasting Jobs?," Discussion Paper 2010-95, Tilburg University, Center for Economic Research.
  6. Blanchard, O.J. & Diamond, P., 1990. "Ranking, Unemployment Duration, And Wages," Working papers 546, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. 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.
  8. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  9. Jeff Biddle & Daniel Hamermesh, 2013. "Wage discrimination over the business cycle," IZA Journal of Labor Policy, Springer, vol. 2(1), pages 1-19, December.
  10. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages F452-F477, November.
  11. Antoni, Manfred & Jahn, Elke J., 2006. "Do changes in regulation affect employment duration in temporary work agencies?," IAB Discussion Paper 200618, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  12. David H. Autor & Susan N. Houseman, 2010. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 96-128, July.
  13. Bart Cockx & Matteo Picchio, 2013. "Scarring effects of remaining unemployed for long-term unemployed school-leavers," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(4), pages 951-980, October.
  14. Verhofstadt, Elsy & Goebel, Christian, 2008. "Is Temporary Employment a Stepping Stone for Unemployed School Leavers?," ZEW Discussion Papers 08-093, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  15. Fredrik Andersson & Harry J. Holzer & Julia Lane, 2007. "Temporary Help Agencies and the Advancement Prospects of Low Earners," NBER Working Papers 13434, National Bureau of Economic Research, Inc.
  16. Zijl, Marloes & van den Berg, Gerard J. & Heyma, Arjan, 2004. "Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration until Regular Work," IZA Discussion Papers 1241, Institute for the Study of Labor (IZA).
  17. Sarah Hamersma & Carolyn Heinrich, 2007. "Temporary Help Service Firms' Use of Employer Tax Credits: Implications for Disadvantaged Workers' Labor Market Outcomes," Upjohn Working Papers and Journal Articles 07-135, W.E. Upjohn Institute for Employment Research.
  18. Peter R. Mueser & Kenneth R. Troske & Carolyn J. Heinrich, 2007. "The Role of Temporary Help Employment in Low-wage Worker Advancement," Working Papers 0719, Department of Economics, University of Missouri.
  19. Ichino, Andrea & Mealli, Fabrizia & Nannicini, Tommaso, 2006. "From Temporary Help Jobs to Permanent Employment: What Can We Learn from Matching Estimators and their Sensitivity?," CEPR Discussion Papers 5736, C.E.P.R. Discussion Papers.
  20. Heinrich, Carolyn J. & Mueser, Peter R. & Troske, Kenneth, 2002. "Welfare to Temporary Work: Implications for Labor Market Outcomes," IZA Discussion Papers 584, Institute for the Study of Labor (IZA).
  21. 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.
  22. Martin Browning & Thomas F. Crossley & Eric Smith, 2003. "Asset Accumulation and Short Term Employment," CAM Working Papers 2003-02, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  23. Gaure, Simen & Roed, Knut & Zhang, Tao, 2007. "Time and causality: A Monte Carlo assessment of the timing-of-events approach," Journal of Econometrics, Elsevier, vol. 141(2), pages 1159-1195, December.
  24. Arni, Patrick & Lalive, Rafael & van Ours, Jan C., 2009. "How Effective Are Unemployment Benefit Sanctions? Looking Beyond Unemployment Exit," IZA Discussion Papers 4509, Institute for the Study of Labor (IZA).
  25. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The identifiability of the mixed proportional hazards competing risks model," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(3), pages 701-710.
  26. Tomi Kyyrä & Pierpaolo Parrotta & Michael Rosholm, 2009. "The effect of receiving supplementary UI benefits on unemployment duration," Working Papers 1, Government Institute for Economic Research Finland (VATT).
  27. Bratberg, E. & Anti Nilsen, O., 2000. "Transitions from School to Work and the Early Labour Market Experience," Norway; Department of Economics, University of Bergen 217, Department of Economics, University of Bergen.
  28. Eriksson, Tor & Jensen, Peter, 2003. "Tidsbegränsade anställningar - danska erfarenheter," Working Papers 03-15, University of Aarhus, Aarhus School of Business, Department of Economics.
  29. Tito Boeri & Pietro Garibaldi, 2009. "Beyond Eurosclerosis," Economic Policy, CEPR;CES;MSH, vol. 24, pages 409-461, 07.
  30. Elke J. Jahn & Regina T. Riphahn & Claus Schnabel, 2012. "Feature: Flexible Forms of Employment: Boon and Bane," Economic Journal, Royal Economic Society, vol. 122(562), pages F115-F124, 08.
  31. Brinch, Christian N., 2007. "Nonparametric Identification Of The Mixed Hazards Model With Time-Varying Covariates," Econometric Theory, Cambridge University Press, vol. 23(02), pages 349-354, April.
  32. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  33. David H. Autor & Susan N. Houseman & Sari Pekkala Kerr, 2012. "The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach," NBER Working Papers 17972, National Bureau of Economic Research, Inc.
  34. Gagliarducci, Stefano, 2005. "The dynamics of repeated temporary jobs," Labour Economics, Elsevier, vol. 12(4), pages 429-448, August.
  35. Brian McCall & Wei Chi, . "Unemployment Insurance, Unemployment Durations and Re-employment Wages," Working Papers 0306, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
  36. Gaure, Simen & Røed, Knut & Westlie, Lars, 2008. "The Impacts of Labor Market Policies on Job Search Behavior and Post-Unemployment Job Quality," Memorandum 22/2008, Oslo University, Department of Economics.
  37. Julia Lane & Kelly S. Mikelson & Pat Sharkey & Doug Wissoker, 2003. "Pathways to work for low-income workers: The effect of work in the temporary help industry," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 581-598.
  38. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-88, November.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:eecrev:v:65:y:2014:i:c:p:108-125. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.