The Role of Temporary Help Agencies in Facilitating Temp-to-Perm Transitions

43 Pages Posted: 24 Jul 2006

See all articles by Catalina Amuedo-Dorantes

Catalina Amuedo-Dorantes

San Diego State University - Department of Economics; IZA Institute of Labor Economics

Miguel A. Malo

University of Salamanca - Department of Economics and Economic History

Fernando Muñoz-Bullon

Universidad Carlos III de Madrid - School of Politics and Economics

Date Written: June 2006

Abstract

This paper evaluates the impact of agency work on temporary workers' posterior likelihood of being hired on a permanent basis. We use administrative data on two groups of temporary workers for whom we have complete work histories since they are first observed in 1998 until the year 2004. One group consists of workers employed through a temporary help agency (THA) at some point during the seven year period under examination (treated group). The other group is composed of individuals employed as direct-hire temps at some point between 1998 and the year 2004, but never via a THA (control group). Using propensity score matching methods, we find that agency workers endure a lower likelihood of being hired on a permanent basis following their temporary assignment than their direct-hire counterparts.

Keywords: temporary help agency, temporary employment, permanent employment

JEL Classification: J2, J4

Suggested Citation

Amuedo-Dorantes, Catalina and Malo, Miguel A. and Muñoz-Bullon, Fernando, The Role of Temporary Help Agencies in Facilitating Temp-to-Perm Transitions (June 2006). IZA Discussion Paper No. 2177. Available at SSRN: https://ssrn.com/abstract=918721

Catalina Amuedo-Dorantes (Contact Author)

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States
619-594-1663 (Phone)
619-594-5062 (Fax)

IZA Institute of Labor Economics

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

Miguel A. Malo

University of Salamanca - Department of Economics and Economic History ( email )

Salamanca, 37008
Spain

Fernando Muñoz-Bullon

Universidad Carlos III de Madrid - School of Politics and Economics ( email )

E-28903 Getafe (Madrid)
Spain

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