Temporary Help Agencies and the Advancement Prospects of Low Earners

Fredrik Andersson, Harry J. Holzer and Julia Lane

in Studies of Labor Market Intermediation

Published by University of Chicago Press

Published in print December 2009 | ISBN: 9780226032887
Published online February 2013 | e-ISBN: 9780226032900 | DOI:
Temporary Help Agencies and the Advancement Prospects of Low Earners

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This chapter provides the estimate effects of temporary employment on the earnings of persistently low earners over a subsequent six-year period using the new longitudinal data from the Census Bureau on the universe of Unemployment Insurance (UI)-covered workers and their employers in five states. The results show that temporary earners clearly have lower earnings than others while working at these agencies, and even their subsequent earnings are somewhat mixed. But these earnings are generally higher if they manage to gain stable employment with other employers. Furthermore, the positive effects seem mostly to occur because those working for temporary agencies subsequently work for higher-wage firms than do comparable low earners who do not work for temporaries.

Keywords: temporary employment; Unemployment Insurance; UI; employers; earners

Chapter.  10908 words.  Illustrated.

Subjects: Econometrics and Mathematical Economics

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