Are temporary work agencies stepping stones into regular employment

Bibliographic Data

ID3074529
AuthorsJoakim Hveem (Stockholm University, corresponding author)
Year2013
Volume2
Issue1
Publication date2013-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIZA Journal of Migration (JOURNAL)
Journal identifiersISSN: 2193-9039 • E-ISSN: 2193-9039
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1186/2193-9039-2-21
OpenAlexW2110199682
LanguageEN
Citations received3
References cited17

This paper estimates the causal effect of temporary work agency (TWA) employment on the subsequent probability of employment in the regular labor market. The main purpose is to estimate the stepping-stone effect separately for natives and immigrants, where the latter group potentially benefits the most from TWA employment. Since no quasi-experiment is available, individual Differences-in-Differences and matching is used to deal with the potential selection bias. The results point at a negative regular employment effect, which slowly fades away over a couple of years. Thus no evidence of a stepping-stone effect is found. When conditioning on immigrants, this negative effect is absent. A long-run significant effect is found on overall employment probability (including TWA employment), there is even a long-run positive effect on annual earnings (mainly driven by women). Unemployment probabilities decreased, however the results in the estimation were less stable over time compared to the employment estimates, suggesting that the TWAs might keep individuals from exiting the labor market

Agency (philosophy · Demographic economics · Earnings · Economics · Estimation · Immigration · Labour economics · Matching (statistics · Percentage point · Point (geometry · Statistics · Stepping stone · Unemployment · Work (physics · Labor market dynamics and wage inequality · Mathematics · Migration and Labor Dynamics · Migration, Ethnicity, and Economy

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