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What Does a Temporary Help Service Job Offer? Empirical suggestions from a Japanese survey

  • OKUDAIRA Hiroko
  • OHTAKE Fumio
  • KUME Koichi
  • TSURU Kotaro

The aim of this paper is to test whether or not a temporary help service (THS) job benefits workers in Japan. By applying the average treatment effect on the treated estimation and its sensitivity tests to the Japanese survey data, we obtained the following findings. First, we observed evidence that THS work negatively impacts the probability of permanent employment in subsequent waves, when compared to directly hired part-time employment. Second, THS workers earn a significantly higher hourly wage than those originally unemployed. For those seeking permanent employment in particular, THS work provides a quick way to make a living for up to two years. We conclude that THS work in Japan has provided a means to obtaining quick earnings but has not offered a stepping-stone to permanent employment.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 11077.

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Length: 49 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:eti:dpaper:11077
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  1. David H. Autor & Susan N. Houseman, . "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," Upjohn Working Papers and Journal Articles dhasnh2010, W.E. Upjohn Institute for Employment Research.
  2. 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.
  3. Peter R. Mueser & Carolyn J. Heinrich & Kenneth Troske, 2003. "Welfare to Temporary Work: Implications for Labor Market Outcomes," Working Papers 0308, Department of Economics, University of Missouri.
  4. Tommaso Nannicini, 2009. "A simulation-based sensitivity analysis for matching estimators," Italian Stata Users' Group Meetings 2008 05, Stata Users Group.
  5. 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.
  6. 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).
  7. Maertens, Miet & Colen, Liesbeth & Swinnen, Johan F.M., 2009. "Globalization and Poverty in Senegal: A Worst Case Scenario?," 2009 Conference, August 16-22, 2009, Beijing, China 51668, International Association of Agricultural Economists.
  8. Julen ESTEBAN-PRETEL & NAKAJIMA Ryo & TANAKA Ryuichi, 2009. "Are Contingent Jobs Dead Ends or Stepping Stones to Regular Jobs? Evidence from a Structural Estimation," Discussion papers 09002, Research Institute of Economy, Trade and Industry (RIETI).
  9. 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).
  10. 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.
  11. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  12. James J. Heckman & Petra E. Todd, 2009. "A Note on Adapting Propensity Score Matching and Selection Models to Choice Based Samples," NBER Working Papers 15179, National Bureau of Economic Research, Inc.
  13. 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.
  14. OKUDAIRA Hiroko & OHTAKE Fumio & KUME Koichi & TSURU Kotaro, 2011. "What Does a Temporary Help Service Job Offer? Empirical suggestions from a Japanese survey," Discussion papers 11077, Research Institute of Economy, Trade and Industry (RIETI).
  15. 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.
  16. David H. Autor, 2000. "Why Do Temporary Help Firms Provide Free General Skills Training?," NBER Working Papers 7637, National Bureau of Economic Research, Inc.
  17. Lewis Segal & Daniel Sullivan, 1996. "The growth of temporary services work," Working Paper Series, Macroeconomic Issues WP-96-26, Federal Reserve Bank of Chicago.
  18. Cornelissen, Thomas & Himmler, Oliver & Koenig, Tobias, 2013. "Fairness spillovers—The case of taxation," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 164-180.
  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. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, 01.
  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.
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