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Temporary help agencies and occupational mobility

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Abstract

This paper focuses upon the effect of Temporary Help Agencies (THAs) on occupational mobility through a comparison of the job-to-job upgrading chances of THA and non-THA workers. A screening approach to the role of these labor "brokers" suggests that agency workers can expect greater upgrading chances between two different occupations. Results obtained from a sample of Spanish workers show that working through these intermediaries allows workers in intermediate occupational levels to avoid occupational demotions more easily than non-THA ones. Moreover, THAs improve the probability for high-skilled workers of achieving a permanent contract. The empirical analysis demonstrates that the existence of self-selection is an important explanation for increased occupational mobility among THA workers in Spain.

Suggested Citation

  • García-Pérez, J. Ignacio, 2003. "Temporary help agencies and occupational mobility," DEE - Working Papers. Business Economics. WB wb034110, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    • Handle: RePEc:cte:wbrepe:wb034110
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    1. García-Pérez, J. Ignacio, 2003. "The nineties in Spain: too much flexibility in the youth labour market?," DEE - Working Papers. Business Economics. WB wb030302, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    2. Katharine G. Abraham, 1988. "Flexible Staffing Arrangements and Employers' Short-Term Adjustment Strategies," NBER Working Papers 2617, National Bureau of Economic Research, Inc.
    3. Neugart, Michael & Storrie, Donald, 2002. "Temporary work agencies and equilibrium unemployment," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-203, WZB Berlin Social Science Center.
    4. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    5. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1409-1448.
    6. Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages 270-295, June.
    7. Lewis M. Segal & Daniel G. Sullivan, 1997. "The Growth of Temporary Services Work," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 117-136, Spring.
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    1. Carlos García-Serrano & Virginia Hernanz & Luis Toharia, 2010. "Mind the Gap, Please! The Effect of Temporary Help Agencies on the Consequences of Work Accidents," Journal of Labor Research, Springer, vol. 31(2), pages 162-182, June.
    2. J. Ignacio García‐Pérez & Fernando Muñoz‐Bullón, 2011. "Transitions into Permanent Employment in Spain: An Empirical Analysis for Young Workers," British Journal of Industrial Relations, London School of Economics, vol. 49(1), pages 103-143, March.
    3. Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2009. "The Role of Temporary Help Employment in Low-Wage Worker Advancement," NBER Chapters, in: Studies of Labor Market Intermediation, pages 399-436, National Bureau of Economic Research, Inc.
    4. Taehyun Ahn, 2016. "An Analysis of Employment Dynamics in Korea: The Role of Temporary Work and Self-Employment," Working Papers 1606, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    5. Carlo Gianelle, 2014. "Labor market intermediaries make the world smaller," Journal of Evolutionary Economics, Springer, vol. 24(5), pages 951-981, November.
    6. Moral De Blas, Alfonso & Martín-Román, Ángel & Rodríguez Caballero, Juan Carlos, 2013. "El papel de las ETTs en la reducción del riesgo moral asociado al seguro por accidentes de trabajo: El caso de España/The Role of the TWAs in the Reduction of Moral Hazard in Workplace Accident Insura," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 497-522, Septiembr.
    7. Kvasnicka, Michael, 2005. "Does temporary agency work provide a stepping stone to regular employment?," SFB 649 Discussion Papers 2005-031, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    8. Addabbo, Tindara & Favaro, Donata, 2010. "The flexibility penalty in a long-term perspective," MPRA Paper 21064, University Library of Munich, Germany.
    9. repec:hum:wpaper:sfb649dp2005-031 is not listed on IDEAS
    10. Alba-Ramirez, Alfonso & Arranz, Jose M. & Munoz-Bullon, Fernando, 2007. "Exits from unemployment: Recall or new job," Labour Economics, Elsevier, vol. 14(5), pages 788-810, October.
    11. Michael Kvasnicka, 2009. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Chapters, in: Studies of Labor Market Intermediation, pages 335-372, National Bureau of Economic Research, Inc.
    12. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June.
    13. Amuedo-Dorantes, Catalina & Malo, Miguel & Muñoz-Bullón, Fernando, 2006. "The Role of Temporary Help Agencies in Facilitating Temp-to-Perm Transitions," IZA Discussion Papers 2177, Institute of Labor Economics (IZA).
    14. Susan N. Houseman, 2014. "Temporary agency work," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-27, May.
    15. Arranz, José M., 2006. "Unemployment duration, unemployment benefits and recalls," DEE - Working Papers. Business Economics. WB wb066218, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.

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