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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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    File URL: http://eprints.lse.ac.uk/126767/
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    References listed on IDEAS

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    1. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    2. A. Kerem Co?ar & Nezih Guner & James Tybout, 2016. "Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy," American Economic Review, American Economic Association, vol. 106(3), pages 625-663, March.
    3. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    4. Acemoglu, Daron & Shimer, Robert, 1999. "Holdups and Efficiency with Search Frictions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(4), pages 827-849, November.
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    Cited by:

    1. Natalia Bermúdez-Barrezueta & Sam Desiere & Giulia Tarullo, 2025. "Hiring subsidies and temporary work agencies," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 25/1103, Ghent University, Faculty of Economics and Business Administration.
    2. Natalia Bermúdez-Barrezueta & Sam Desiere & Giulia Tarullo, 2025. "Hiring subsidies and temporary work agencies," LIDAM Discussion Papers IRES 2025003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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    More about this item

    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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