Abstract

http://ssrn.com/abstract=1251031
 
 

References (39)



 
 

Citations (3)



 


 



Reassessing the Wage Penalty for Temps in Germany


Elke J. Jahn


Government of the Federal Republic of Germany - Institute for Employment Research (IAB); University of Aarhus - Business and Social Sciences; Institute for the Study of Labor (IZA); University of Erlangen-Nuremberg - Department of Economics


IZA Discussion Paper No. 3663

Abstract:     
As a consequence of the rapid growth of temporary agency employment in Germany, the debate on the poor working conditions of temps, specifically their remuneration, has intensified recently. Using administrative data, the paper shows that the wage gap for German temp workers is rather large and varies between occupation and region. But temps already suffer from a marked wage decline before entering the temporary help sector. Nevertheless, temporary agency employment does not leave a long lasting scar. Two years after leaving the sector, temps no longer suffer from a wage penalty. A recent change in the law set a high incentive for temporary help agencies to pay their workers according to a sectoral collective agreement. Surprisingly, the unionization of the sector could not bring the widening wage gap to a halt.

Number of Pages in PDF File: 39

Keywords: temporary agency employment, wage differential, earnings, Germany, reform

JEL Classification: J30, J31, J42

working papers series


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Date posted: August 27, 2008  

Suggested Citation

Jahn, Elke J., Reassessing the Wage Penalty for Temps in Germany. IZA Discussion Paper No. 3663. Available at SSRN: http://ssrn.com/abstract=1251031 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Contact Information

Elke J. Jahn (Contact Author)
Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )
Regensburger Str. 104
Nuremberg, 90478
Germany
University of Aarhus - Business and Social Sciences
Fuglesangs Alle 4
Building 1326, room 111
DK-8210 Aarhus, 8210
Denmark
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
University of Erlangen-Nuremberg - Department of Economics ( email )
Lange Gasse 20
Nuernberg, D-90403
Germany
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