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The Wage of Temporary Agency Workers

Author

Listed:
  • Antonin Bergeaud

    (HEC Paris - Ecole des Hautes Etudes Commerciales)

  • Pierre Cahuc

    (INSEE - Institut national de la statistique et des études économiques (INSEE), ENSAE - Ecole Nationale de la Statistique et de l'Analyse Economique - Ecole Nationale de la Statistique et de l'Analyse Economique, UP1 - Université Paris 1 Panthéon-Sorbonne, UA - Université d'Angers, CEPR - Center for Economic Policy Research, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

  • Clément Malgouyres

    (IPP - Institut des politiques publiques)

  • Sara Signorelli

    (JST - Japan Science and Technology Agency)

  • Thomas Zuber

    (Banque de France - Banque de France - Banque de France)

Abstract

Using French administrative data we estimate the wage gap distribution between in-house and temporary agency workers working in the same establishment and the same occupation. The average wage gap is about 3%, but the gap is negative in more than 25% of establishment × occupation cells. We develop and estimate a search and matching model which shows that while the wage gap is largely inefficient, eliminating it reduces efficiency, as it also arises from objective factors that contribute to the efficient allocation of jobs.

Suggested Citation

  • Antonin Bergeaud & Pierre Cahuc & Clément Malgouyres & Sara Signorelli & Thomas Zuber, 2024. "The Wage of Temporary Agency Workers," Working Papers hal-04759280, HAL.
    • Handle: RePEc:hal:wpaper:hal-04759280
    DOI: 10.2139/ssrn.4889210
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    Cited by:

    1. is not listed on IDEAS
    2. Bermúdez-Barrezueta, Natalia & Desiere, Sam & Tarullo, Giulia, 2025. "Hiring Subsidies and Temporary Work Agencies," IZA Discussion Papers 17616, Institute of Labor Economics (IZA).
    3. Carrasco, Raquel & Gálvez Iniesta, Ismael & Jerez, Belén, 2024. "Temporary agency work and labor misallocation," UC3M Working papers. Economics 44503, Universidad Carlos III de Madrid. Departamento de Economía.

    More about this item

    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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