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The Role of Temporary Help Agencies in Facilitating Temp-to-Perm Transitions

Author

Listed:
  • Amuedo-Dorantes, Catalina

    (University of California, Merced)

  • Malo, Miguel

    (Universidad de Salamanca)

  • Muñoz-Bullón, Fernando

    (Universidad Carlos III de Madrid)

Abstract

This paper evaluates the impact of agency work on temporary workers’ posterior likelihood of being hired on a permanent basis. We use administrative data on two groups of temporary workers for whom we have complete work histories since they are first observed in 1998 until the year 2004. One group consists of workers employed through a temporary help agency (THA) at some point during the seven year period under examination (treated group). The other group is composed of individuals employed as direct-hire temps at some point between 1998 and the year 2004, but never via a THA (control group). Using propensity score matching methods, we find that agency workers endure a lower likelihood of being hired on a permanent basis following their temporary assignment than their direct-hire counterparts.

Suggested Citation

  • 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, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp2177
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    References listed on IDEAS

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    1. David H. Autor & Susan N. Houseman, 2010. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 96-128, July.
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    4. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1409-1448.
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    7. Catalina Amuedo-Dorantes, 2000. "Work Transitions into and Out of Involuntary Temporary Employment in a Segmented Market: Evidence from Spain," ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
    8. Susan N. Houseman & Anne E. Polivka, 1999. "The Implications of Flexible Staffing Arrangements for Job Stability," Upjohn Working Papers 99-56, W.E. Upjohn Institute for Employment Research.
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    11. Susan N. Houseman & Anne E. Polivka, 2000. "The Implications of Flexible Staffing Arrangements for Job Stability," Book chapters authored by Upjohn Institute researchers, in: David Neumark (ed.),On the Job: Is Long-Term Employment a Thing of the Past?, pages 427-462, W.E. Upjohn Institute for Employment Research.
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    Cited by:

    1. René Böheim & Ana Rute Cardoso, 2009. "Temporary Help Services Employment in Portugal, 1995-2000," NBER Chapters, in: Studies of Labor Market Intermediation, pages 309-334, National Bureau of Economic Research, Inc.
    2. Bart Cockx & Matteo Picchio, 2012. "Are Short-lived Jobs Stepping Stones to Long-Lasting Jobs?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(5), pages 646-675, October.
    3. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008. "From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 305-327.
    4. Böheim, René & Cardoso, Ana Rute, 2007. "Temporary Agency Work in Portugal, 1995–2000," IZA Discussion Papers 3144, Institute of Labor Economics (IZA).
    5. 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.
    6. H Ingham & M Ingham, 2010. "Temporary Work in Poland: Who Gets the Jobs?," Working Papers 604645, Lancaster University Management School, Economics Department.
    7. Niebuhr, Annekatrin & Buch, Tanja, 2013. "Wage effects of labor market entry via temporary work agency employment - evidence for German apprenticeship graduates," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79818, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    temporary help agency; temporary employment; permanent employment; Spain;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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