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The wage of temporary agency workers

Author

Listed:
  • Bergeaud, Antonin
  • Cahuc, Pierre
  • Malgouyres, Clement
  • Signorelli, Sara
  • Zuber, Thomas

Abstract

Using French administrative data, we estimate the wage gap distribution between in-house and temporary agency workers working in the same establishment and the same occupation. The average wage gap is about 3%, but the gap is negative in more than 25% of establishment x occupation cells. We develop and estimate a search and matching model which shows that while the wage gap is largely inefficient, eliminating it reduces efficiency, as it also arises from objective factors that contribute to the efficient allocation of jobs.

Suggested Citation

  • Bergeaud, Antonin & Cahuc, Pierre & Malgouyres, Clement & Signorelli, Sara & Zuber, Thomas, 2024. "The wage of temporary agency workers," LSE Research Online Documents on Economics 126767, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:126767
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    Keywords

    wage gap; temporary work agency; labor market frictions;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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