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Does Temporary Agency Work Provide a Stepping Stone to Regular Employment?

  • Michael Kvasnicka

Based on administrative data from the federal employment office in Germany, we apply matching techniques to estimate the stepping-stone function of temporary agency work for the unemployed, i.e. its short-run and long-run effects on their future employment prospects. Our results show that unemployed workers who take up a job in the temporary work agency (TWA) industry are on average more likely than unemployed workers not joining TWA work to be in agency employment in the four year period these workers are tracked after entering TWA work. However, we find no discernable effects on the probabilities of being either in regular employment or registered unemployment. Our findings therefore do not lend support to the stepping-stone function of temporary agency work.

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File URL: http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2005-031.pdf
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Paper provided by Sonderforschungsbereich 649, Humboldt University, Berlin, Germany in its series SFB 649 Discussion Papers with number SFB649DP2005-031.

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Length: 42 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:hum:wpaper:sfb649dp2005-031
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  20. Lewis M. Segal & Daniel G. Sullivan, 1997. "Temporary services employment durations: evidence from state UI data," Working Paper Series, Macroeconomic Issues WP-97-23, Federal Reserve Bank of Chicago.
  21. Lechner, Michael, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA).
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