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The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data

Listed author(s):
  • Lass, Inga

    ()

    (Melbourne Institute of Applied Economic and Social Research)

  • Wooden, Mark

    ()

    (Melbourne Institute of Applied Economic and Social Research)

This study uses panel data for Australia from the HILDA Survey to estimate the wage differential between workers in temporary jobs and workers in permanent jobs. Specifically, unconditional quantile regression methods with fixed effects are used to examine how this gap varies over the entire wages distribution. While fixed-term contract workers are on rates of pay that are similar to permanent workers, low-paid casual workers experience a wage penalty and high-paid casual workers a wage premium compared to their permanent counterparts. Finally, temporary agency workers usually receive a wage premium, which is particularly large for the most well paid.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10670.

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Length: 31 pages
Date of creation: Mar 2017
Handle: RePEc:iza:izadps:dp10670
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  1. Wooden, Mark, 2001. "Union Wage Effects in the Presence of Enterprise Bargaining," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 1-18, March.
  2. Colin P. Green & Gareth D. Leeves, 2013. "Job Security, Financial Security and Worker Well-being: New Evidence on the Effects of Flexible Employment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(2), pages 121-138, 05.
  3. Hielke Buddelmeyer & Duncan McVicar & Mark Wooden, 2015. "Non-Standard “Contingent” Employment and Job Satisfaction: A Panel Data Analysis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 256-275, 04.
  4. Colin Green & Parvinder Kler & Gareth Leeves, 2010. "Flexible Contract Workers in Inferior Jobs: Reappraising the Evidence," British Journal of Industrial Relations, London School of Economics, vol. 48(3), pages 605-629, 09.
  5. Lixin Cai & Amy Y.C. Liu, 2008. "Union Wage Effects in Australia: Is There Variation along the Distribution?," The Economic Record, The Economic Society of Australia, vol. 84(267), pages 496-510, December.
  6. Antje Mertens & Vanessa Gash & Frances McGinnity, 2007. "The Cost of Flexibility at the Margin. Comparing the Wage Penalty for Fixed-term Contracts in Germany and Spain using Quantile Regression," LABOUR, CEIS, vol. 21(4-5), pages 637-666, December.
  7. Michael D. S. Morris & Alexander Vekker, 2001. "An Alternative Look at Temporary Workers, Their Choices, and the Growth in Temporary Employment," Journal of Labor Research, Transaction Publishers, vol. 22(2), pages 373-390, April.
  8. Simona COMI & Mara GRASSENI, 2009. "Are Temporary Workers Discriminated Against? Evidence from Europe," CHILD Working Papers wp17_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  9. Mirko Draca & Colin Green, 2004. "The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 609-625, November.
  10. Giulio Bosio, 2014. "The Implications of Temporary Jobs on the Distribution of Wages in Italy: An Unconditional IVQTE Approach," LABOUR, CEIS, vol. 28(1), pages 64-86, 03.
  11. Bosio, Giulio, 2009. "Temporary employment and wage gap with permanent jobs: evidence from quantile regression," MPRA Paper 16055, University Library of Munich, Germany.
  12. Antje Mertens & Frances McGinnity, 2005. "A “Two-Tier” Labour Market for Fixed-Term Jobs? Evaluating Evidence from West Germany Using Quantile Regression," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(1), pages 75-85.
  13. Renato Faccini, 2014. "Reassessing Labour Market Reforms: Temporary Contracts as a Screening Device," Economic Journal, Royal Economic Society, vol. 124(575), pages 167-200, 03.
  14. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter.
  15. Rocio Bonet & Cristina Cruz & Daniel Fernández Kranz & Rachida Justo, 2013. "Temporary Contracts and Work—Family Balance in a Dual Labor Market," ILR Review, Cornell University, ILR School, vol. 66(1), pages 55-87, January.
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