Temporary Help Agencies and the Advancement Prospects of Low Earners

45 Pages Posted: 21 Nov 2007

See all articles by Fredrik Andersson

Fredrik Andersson

Office of the Comptroller of the Currency (OCC)

Harry J. Holzer

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

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: October 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.

Keywords: temp, employment, advancement, intermediaries

JEL Classification: J31, J6, J62, J68

Suggested Citation

Andersson, Per Fredrik Daniel and Holzer, Harry J. and Lane, Julia, Temporary Help Agencies and the Advancement Prospects of Low Earners (October 2007). IZA Discussion Paper No. 3113. Available at SSRN: https://ssrn.com/abstract=1031692

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)

Harry J. Holzer (Contact Author)

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

3600 N Street, NW Suite 200
Washington, DC 20057
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

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

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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