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On the Wages of Temporary Help Service Workers in Germany

Author

Listed:
  • Michael Kvasnicka

    (Humboldt-University Berlin)

  • Axel Werwatz

    (German Institute for Economic Research)

Abstract

This paper produces first econometric estimates for Germany of the contemporanous wage gap associated with Temporary Help Service (THS) employment, as well as the long-term effects of THS work on the future earnings of workers. In addition, we present evidence showing that average male real earnings in the THS industry have declined by about 9% in the period 1975-1995. Our estimates of the overall and group-specific wage gaps attached to THS work are large, albeit significantly smaller than those cited in the existing descriptive literature. Moreover, we find no evidence for any discernable negative average long-term earnings e¤ects of THS work. If anything, THS work seems to have aided workers in putting to a halt declines in their relative earnings observable before joining the THS market.

Suggested Citation

  • Michael Kvasnicka & Axel Werwatz, 2003. "On the Wages of Temporary Help Service Workers in Germany," Labor and Demography 0309004, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0309004
    Note: Type of Document - PDF; pages: 32 ; figures: included. This paper appeared in the discussion paper series of the Sonderforschungsbereich 373 at Humboldt-University Berlin in the summer of 2002. An updated version can be obtained from the authors upon request.
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    References listed on IDEAS

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    Cited by:

    1. Kvasnicka, Michael, 2003. "Inside The Black Box of Temporary Help Agencies," SFB 373 Discussion Papers 2003,43, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    2. Michael Kvasnicka, 2005. "Does Temporary Agency Work Provide a Stepping Stone to Regular Employment?," Labor and Demography 0510005, University Library of Munich, Germany.
    3. Ammermüller, Andreas & Boockmann, Bernhard & Garloff, Alfred & Kuckulenz, Anja & Spermann, Alexander, 2003. "Die ZEW-Erhebung bei Zeitarbeitsbetrieben: Dokumentation der Umfrage und Ergebnisse von Analysen," ZEW Dokumentationen 03-07, ZEW - Leibniz Centre for European Economic Research.
    4. Michael C. Burda & Michael Kvasnicka, 2006. "Zeitarbeit in Deutschland: Trends und Perspektiven," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 195-225, May.
    5. Marcel GARZ, 2013. "Employment and wages in Germany since the 2004 deregulation of the temporary agency industry," International Labour Review, International Labour Organization, vol. 152(2), pages 307-326, June.
    6. Andersson Joona, Pernilla & Wadensjö, Eskil, 2012. "A Price for Flexibility? The Temp Agency Wage Gap in Sweden 1998-2008," IZA Discussion Papers 6587, Institute of Labor Economics (IZA).
    7. 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.
    8. Jahn Elke J., 2010. "Reassessing the Pay Gap for Temps in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(2), pages 208-233, April.
    9. Jahn, Elke J., 2008. "Reassessing the Wage Penalty for Temps in Germany," IZA Discussion Papers 3663, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    temporary help services agency work wages;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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