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Welfare to Temporary Work: Implications for Labor Market Outcomes

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Author Info
Heinrich, Carolyn J. (University of North Carolina-Chapel Hill)
Mueser, Peter R. (University of Missouri-Columbia)
Troske, Kenneth R. () (IZA Bonn and University of Missouri-Columbia)

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Abstract

Recent welfare reforms are prompting some state and local welfare agencies to use temporary help service firms to help place welfare recipients into jobs. Concerns have arisen that these jobs are more likely to pay low wages, provide fewer benefits, and offer less stability. We explore the effects of temporary help firms on the labor market outcomes of welfare recipients by looking at the characteristics of welfare recipients who go to work for temporary service firms and by examining their subsequent employment and welfare dynamics. We find that although welfare recipients who go to work for temporary help service firms have lower initial wages they experience faster subsequent wage growth. Two years later, their wages are only slightly below workers who initially had jobs in other sectors, and they are no more likely to be unemployed and are only slightly more likely to remain on welfare.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 584.

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Length: 46 pages
Date of creation: Sep 2002
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Handle: RePEc:iza:izadps:dp584

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Related research
Keywords: temporary help; welfare;

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Find related papers by JEL classification:
I3 - Health, Education, and Welfare - - Welfare and Poverty
J0 - Labor and Demographic Economics - - General
J4 - Labor and Demographic Economics - - Particular Labor Markets

References listed on IDEAS
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  1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages F189-F213, June. [Downloadable!] (restricted)
    Other versions:
  2. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March. [Downloadable!] (restricted)
  3. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    Other versions:
  4. Susan N. Houseman & Anne E. Polivka, 1999. "The Implications of Flexible Staffing Arrangements for Job Stability," Staff Working Papers 99-56, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  5. Joseph Gyourko & Joseph Tracy, 1986. "An Analysis of Public and Private Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," NBER Working Papers 1920, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Michael D. S. Morris & Alexander Vekker, 2001. "An Alternative Look at Temporary Workers, Their Choices, and the Growth in Temporary Employment," Journal of Labor Research, Transaction Publishers, vol. 22(2), pages 373-390, April. [Downloadable!] (restricted)
  7. Timothy J. Bartik, 1997. "Short-Term Employment Persistence for Welfare Recipients: The "Effects" of Wages, Industry, Occupation and Firm," Staff Working Papers 97-46, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  8. Segal, Lewis M & Sullivan, Daniel G, 1997. "The Growth of Temporary Services Work," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 117-36, Spring. [Downloadable!] (restricted)
  9. Lewis M. Segal & Daniel G. Sullivan, 1997. "Temporary services employment durations: evidence from state UI data," Working Paper Series, Macroeconomic Issues WP-97-23, Federal Reserve Bank of Chicago.
  10. V. J. Hotz & J. K. Scholz, . "Measuring Employment and Income for Low-Income Populations with Administrative and Survey Data," Institute for Research on Poverty Discussion Papers 1224-01, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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This page was last updated on 2009-11-9.

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