Do Changes in Regulation Affect Temporary Agency Workers' Job Satisfaction?

28 Pages Posted: 14 Feb 2015

See all articles by Henna Nivalainen

Henna Nivalainen

University of Jyväskylä

Elke J. Jahn

Institute for Employment Research (IAB); University of Bayreuth; IZA Institute of Labor Economics

Christine Singer

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Abstract

This paper evaluates the impact on temporary agency workers’ job satisfaction of a reform that considerably changed regulations covering the temporary help service sector in Germany. We isolate the causal effect of this reform by combining a difference-in-difference and matching approach and using rich survey data. We find that the change of the law substantially decreased agency workers’ job satisfaction while regular workers’ job satisfaction remained unchanged. Further analysis reveals that the negative effect on agency workers’ job satisfaction can be attributed to a decrease in wages and an increase in perceived job insecurity. These results are also robust to the use of different specifications and placebo tests.

Keywords: temporary agency employment, deregulation, job satisfaction

JEL Classification: J28, J41, J88

Suggested Citation

Nivalainen, Henna and Jahn, Elke J. and Singer, Christine, Do Changes in Regulation Affect Temporary Agency Workers' Job Satisfaction?. IZA Discussion Paper No. 8803. Available at SSRN: https://ssrn.com/abstract=2564936

Henna Nivalainen (Contact Author)

University of Jyväskylä ( email )

Seminaarinkatu 30
Jyväskylä, 40100
Finland

Elke J. Jahn

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

University of Bayreuth ( email )

Bayreuth, 95447
Germany

IZA Institute of Labor Economics ( email )

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

Christine Singer

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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