The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data

31 Pages Posted: 17 Mar 2017

See all articles by Inga Lass

Inga Lass

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Mark Wooden

University of Melbourne - Melbourne Institute of Applied Economic and Social Research; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: March 17, 2017

Abstract

This study uses panel data for Australia from the HILDA Survey to estimate the wage differential between workers in temporary jobs and workers in permanent jobs. Specifically, unconditional quantile regression methods with fixed effects are used to examine how this gap varies over the entire wages distribution. While fixed-term contract workers are on rates of pay that are similar to permanent workers, low-paid casual workers experience a wage penalty and high-paid casual workers a wage premium compared to their permanent counterparts. Finally, temporary agency workers usually receive a wage premium, which is particularly large for the most well paid.

Keywords: Temporary employment, wages, HILDA Survey, quantile regression, longitudinal data

JEL Classification: J31, J41, C21, C23

Suggested Citation

Lass, Inga and Wooden, Mark, The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data (March 17, 2017). Melbourne Institute Working Paper No. 8/17. Available at SSRN: https://ssrn.com/abstract=2934741 or http://dx.doi.org/10.2139/ssrn.2934741

Inga Lass (Contact Author)

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Mark Wooden

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

IZA Institute of Labor Economics

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

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