Temporary Help Work: Compensating Differentials and Multiple Job-Holding

54 Pages Posted: 6 Oct 2012

See all articles by Sarah Hamersma

Sarah Hamersma

University of Florida

Carolyn Heinrich

Vanderbilt University; University of Texas at Austin

Peter R. Mueser

University of Missouri; IZA Institute of Labor Economics


Temporary Help Services (THS) employment has been growing in size, particularly among disadvantaged workers, and in importance in balancing cyclical fluctuations in labor demand. Does THS employment provide some benefits to disadvantaged workers, or divert them from better jobs? We investigate whether THS jobs pay a compensating differential, as would be expected for relatively undesirable jobs. We also address multiple job-holding, exploring whether workers get "stuck" in THS jobs. We find lower quarterly earnings at THS jobs relative to others, but a $1 per hour wage premium. We reconcile these findings by examining hours worked at THS and traditional jobs.

Keywords: temporary employment, compensating differential, quarterly earnings, wages, multiple jobs

JEL Classification: J3, J4

Suggested Citation

Hamersma, Sarah and Heinrich, Carolyn and Mueser, Peter R., Temporary Help Work: Compensating Differentials and Multiple Job-Holding. IZA Discussion Paper No. 6759, Available at SSRN: https://ssrn.com/abstract=2157901

Sarah Hamersma (Contact Author)

University of Florida ( email )

PO Box 117165, 201 Stuzin Hall
Gainesville, FL 32610-0496
United States

Carolyn Heinrich

Vanderbilt University ( email )

2301 Vanderbilt Place
Nashville, TN 37240
United States
615-322-1169 (Phone)

HOME PAGE: http://peabody.vanderbilt.edu/bio/carolyn-heinrich

University of Texas at Austin ( email )

2315 Red River St.
Austin, TX 78713
United States
512-471-3200 (Phone)

HOME PAGE: http://www.utexas.edu/lbj/directory/faculty/carolyn-heinrich

Peter R. Mueser

University of Missouri ( email )

331 Professional Building
Dept. Economics and Truman School Public Affairs
Columbia, MO 65211
United States
573-882-6427 (Phone)

HOME PAGE: http://web.missouri.edu/~mueser/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072

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