A Price for Flexibility? The Temp Agency Wage Gap in Sweden 1998-2008

47 Pages Posted: 16 Jun 2012

See all articles by Pernilla Andersson

Pernilla Andersson

Stockholm University - Swedish Institute for Social Research (SOFI)

Eskil Wadensjo

Stockholm University - Swedish Institute for Social Research (SOFI); IZA Institute of Labor Economics; Stockholm University Linnaeus Center for Integration Studies (SULCIS)

Abstract

Temporary agency employment has grown rapidly in Sweden as in many other countries. The sector was deregulated in the early 1990s and there are now only few remaining restrictions. Even though there are collective agreements covering a large part of the workers in the sector, the unions are worried about low wages and poor working conditions in the sector. This paper analyzes the development of the temporary agency wage gap during the period 1998-2008 using Swedish register data. We find that from a nearly non-existent gap in 2001 and a positive wage gap for women, both male and female temp agency workers received between 16 and 18 percent lower wages in 2008. This development appears partly to be explained by a lower return to university education among temp agency workers than among those employed in other sectors.

Keywords: temporary agency employment, wages

JEL Classification: J31, J42, J62

Suggested Citation

Andersson, Pernilla and Wadensjo, Eskil, A Price for Flexibility? The Temp Agency Wage Gap in Sweden 1998-2008. IZA Discussion Paper No. 6587, Available at SSRN: https://ssrn.com/abstract=2085174 or http://dx.doi.org/10.2139/ssrn.2085174

Pernilla Andersson (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Eskil Wadensjo

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Universitetsvägen 10F
SE-106 91 Stockholm
Sweden

IZA Institute of Labor Economics

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

Stockholm University Linnaeus Center for Integration Studies (SULCIS) ( email )

SE-106 91 Stockholm
Stockholm
Sweden

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
46
Abstract Views
507
PlumX Metrics