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Temporary help agencies and occupational mobility

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

Abstract

This paper focuses upon the effect of Temporary Help Agencies (THAs) on occupational mobility through a comparison of the job-to-job upgrading chances of THA and non-THA workers. A screening approach to the role of these labor "brokers" suggests that agency workers can expect greater upgrading chances between two different occupations. Results obtained from a sample of Spanish workers show that working through these intermediaries allows workers in intermediate occupational levels to avoid occupational demotions more easily than non-THA ones. Moreover, THAs improve the probability for high-skilled workers of achieving a permanent contract. The empirical analysis demonstrates that the existence of self-selection is an important explanation for increased occupational mobility among THA workers in Spain.

Suggested Citation

  • García-Pérez, J. Ignacio & Muñoz-Bullón, Fernando, 2003. "Temporary help agencies and occupational mobility," DEE - Working Papers. Business Economics. WB wb034110, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    • Handle: RePEc:cte:wbrepe:wb034110
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    References listed on IDEAS

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    1. García-Pérez, J. Ignacio & Muñoz-Bullón, Fernando, 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. Neugart, Michael & Storrie, Donald, 2002. "Temporary work agencies and equilibrium unemployment," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-203, WZB Berlin Social Science Center.
    4. Susan N. Houseman, 2001. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
    5. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    6. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1409-1448.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 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.
    2. 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.
    3. Carlo Gianelle, 2014. "Labor market intermediaries make the world smaller," Journal of Evolutionary Economics, Springer, vol. 24(5), pages 951-981, November.
    4. 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 Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 497-522, Septiembr.
    5. 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.
    6. Addabbo, Tindara & Favaro, Donata, 2010. "The flexibility penalty in a long-term perspective," MPRA Paper 21064, University Library of Munich, Germany.
    7. Susan N. Houseman, 2014. "Temporary agency work," World of Labour, LISER, pages 1-27, May.
    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. Alba, Alfonso & Arranz, José M. & Muñoz-Bullón, Fernando, 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.
    10. repec:hum:wpaper:sfb649dp2005-031 is not listed on IDEAS
    11. Carrasco, Raquel & Gálvez-Iniesta, Ismael & Jerez, Belén, 2024. "Do temporary help agencies help? Employment transitions for low-skilled workers," Labour Economics, Elsevier, vol. 90(C).
    12. 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, IZA Network @ LISER.
    13. J. Ignacio García‐Pérez & Fernando Muñoz‐Bullón, 2011. "Transitions into Permanent Employment in Spain: An Empirical Analysis for Young Workers," British Journal of Industrial Relations, London School of Economics, vol. 49(1), pages 103-143, March.
    14. 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.
    15. Taehyun Ahn, 2016. "An Analysis of Employment Dynamics in Korea: The Role of Temporary Work and Self-Employment," Working Papers 1606, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).

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