Temporary Help Agencies and the Advancement Prospects of Low Earners

44 Pages Posted: 24 Sep 2007 Last revised: 17 Sep 2010

See all articles by Harry J. Holzer

Harry J. Holzer

Georgetown University - Public Policy Institute (GPPI); National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Fredrik Andersson

Office of the Comptroller of the Currency (OCC)

Julia Lane

Wagner Graduate School of Public Service; Institute for the Study of Labor (IZA)

Multiple version iconThere are 2 versions of this paper

Date Written: September 2007

Abstract

In this paper we use a very large matched database on firms and employees to analyze the use of temporary agencies by low earners, and to estimate the impact of temp employment on subsequent employment outcomes for these workers. Our results show that, while temp workers have lower earnings than others while working at these agencies, their subsequent earnings are often higher - but only if they manage to gain stable work with other employers. Furthermore, the positive effects seem mostly to occur because those working for temp agencies subsequently gain access to higher-wage firms than do comparable low earners who do not work for temps. The positive effects we find seem to persist for up to six years beyond the period during which the temp employment occurred.

Suggested Citation

Holzer, Harry J. and Andersson, Per Fredrik Daniel and Lane, Julia, Temporary Help Agencies and the Advancement Prospects of Low Earners (September 2007). NBER Working Paper No. w13434. Available at SSRN: https://ssrn.com/abstract=1016345

Harry J. Holzer (Contact Author)

Georgetown University - Public Policy Institute (GPPI) ( email )

3600 N Street, NW Suite 200
Washington, DC 20057
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National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Per Fredrik Daniel Andersson

Office of the Comptroller of the Currency (OCC) ( email )

400 7th St. SW
Washington, DC 20219-0001
United States
202-649-5528 (Phone)
571-465-3246 (Fax)

Julia Lane

Wagner Graduate School of Public Service ( email )

The Puck Building
295 Lafayette Street, Second Floor
New York, NY 10012
United States

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org

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