IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp8803.html
   My bibliography  Save this paper

Do Changes in Regulation Affect Temporary Agency Workers' Job Satisfaction?

Author

Listed:
  • Busk, Henna

    (University of Jyväskylä)

  • Jahn, Elke J.

    (University of Bayreuth)

  • Dauth, Christine

    (Institute for Employment Research (IAB), Nuremberg)

Abstract

This paper evaluates the impact on temporary agency workers’ job satisfaction of a reform that considerably changed regulations covering the temporary help service sector in Germany. We isolate the causal effect of this reform by combining a difference-in-difference and matching approach and using rich survey data. We find that the change of the law substantially decreased agency workers’ job satisfaction while regular workers’ job satisfaction remained unchanged. Further analysis reveals that the negative effect on agency workers’ job satisfaction can be attributed to a decrease in wages and an increase in perceived job insecurity. These results are also robust to the use of different specifications and placebo tests.

Suggested Citation

  • Busk, Henna & Jahn, Elke J. & Dauth, Christine, 2015. "Do Changes in Regulation Affect Temporary Agency Workers' Job Satisfaction?," IZA Discussion Papers 8803, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8803
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp8803.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bardasi, Elena & Francesconi, Marco, 2004. "The impact of atypical employment on individual wellbeing: evidence from a panel of British workers," Social Science & Medicine, Elsevier, vol. 58(9), pages 1671-1688, May.
    2. Marco Caliendo & Reinhard Hujer, 2006. "The microeconometric estimation of treatment effects—An overview," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 90(1), pages 199-215, March.
    3. Hielke Buddelmeyer & Duncan McVicar & Mark Wooden, 2015. "Non-Standard “Contingent” Employment and Job Satisfaction: A Panel Data Analysis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 256-275, April.
    4. Caliendo, Marco & Mahlstedt, Robert & Mitnik, Oscar A., 2017. "Unobservable, but unimportant? The relevance of usually unobserved variables for the evaluation of labor market policies," Labour Economics, Elsevier, vol. 46(C), pages 14-25.
    5. Daniel S. Hamermesh, 2001. "The Changing Distribution of Job Satisfaction," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 1-30.
    6. David H. Autor & Susan N. Houseman, 2010. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 96-128, July.
    7. Gregori Baetschmann & Kevin E. Staub & Rainer Winkelmann, 2015. "Consistent estimation of the fixed effects ordered logit model," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 178(3), pages 685-703, June.
    8. 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.
    9. Elke Jahn, 2015. "Don't Worry, be Flexible? - Job Satisfaction among Flexible Workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(2), pages 147-168.
    10. Michael C. Burda & Michael Kvasnicka, 2006. "Zeitarbeit in Deutschland: Trends und Perspektiven," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 195-225, May.
    11. Adrian Chadi & Clemens Hetschko, 2016. "Flexibilization without hesitation? Temporary contracts and job satisfaction," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 217-237.
    12. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2003. "The Role of Temporary Agency Employment in Tight Labor Markets," ILR Review, Cornell University, ILR School, vol. 57(1), pages 105-127, October.
    13. Anna Cristina D'Addio & Tor Eriksson & Paul Frijters, 2007. "An analysis of the determinants of job satisfaction when individuals' baseline satisfaction levels may differ," Applied Economics, Taylor & Francis Journals, vol. 39(19), pages 2413-2423.
    14. Adrian Chadi & Clemens Hetschko, 2013. "Flexibilisation without Hesitation? Temporary Contracts and Workers’ Satisfaction," IAAEU Discussion Papers 201304, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    15. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    16. Marloes Graaf-Zijl, 2012. "Job Satisfaction and Contingent Employment," De Economist, Springer, vol. 160(2), pages 197-218, June.
    17. Elke J. Jahn & Regina T. Riphahn & Claus Schnabel, 2012. "Feature: Flexible Forms of Employment: Boon and Bane," Economic Journal, Royal Economic Society, vol. 122(562), pages 115-124, August.
    18. Michael Stops, 2016. "Revisiting German labour market reform effects—a panel data analysis for occupational labour markets," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-43, December.
    19. 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.
    20. A. Sousa-Poza & A. A. Sousa-Poza, 2003. "Gender differences in job satisfaction in Great Britain, 1991-2000: permanent or transitory?," Applied Economics Letters, Taylor & Francis Journals, vol. 10(11), pages 691-694.
    21. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 569-606, June.
    22. Salvatori, Andrea, 2010. "Labour contract regulations and workers' wellbeing: International longitudinal evidence," Labour Economics, Elsevier, vol. 17(4), pages 667-678, August.
    23. Origo, Federica & Pagani, Laura, 2009. "Flexicurity and job satisfaction in Europe: The importance of perceived and actual job stability for well-being at work," Labour Economics, Elsevier, vol. 16(5), pages 547-555, October.
    24. Horbach, Jens, 2014. "Determinants of labor shortage - with particular focus on the German environmental sector," IAB-Discussion Paper 201422, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    25. Halla, Martin & Zweimüller, Martina, 2013. "The effect of health on earnings: Quasi-experimental evidence from commuting accidents," Labour Economics, Elsevier, vol. 24(C), pages 23-38.
    26. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
    27. Jahn Elke J., 2010. "Reassessing the Pay Gap for Temps in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(2), pages 208-233, April.
    28. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    29. Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, vol. 4(4), pages 341-372, December.
    30. David H. Autor, 2009. "Studies of Labor Market Intermediation," NBER Books, National Bureau of Economic Research, Inc, number auto07-1.
    31. Martin Halla & Martina Zweimüller, 2011. "The Effect of Health on Income: Quasi-Experimental Evidence from Commuting Accidents," NRN working papers 2011-03, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria, revised Feb 2012.
    32. Boeri, Tito, 2011. "Institutional Reforms and Dualism in European Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 13, pages 1173-1236, Elsevier.
    33. Elke J. Jahn & Jan Bentzen, 2012. "What Drives the Demand for Temporary Agency Workers?," LABOUR, CEIS, vol. 26(3), pages 341-355, September.
    34. Manfred Antoni & Elke J. Jahn, 2009. "Do Changes in Regulation Affect Employment Duration in Temporary Help Agencies?," ILR Review, Cornell University, ILR School, vol. 62(2), pages 226-251, January.
    35. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    36. Moczall, Andreas, 2015. "The effect of hiring subsidies on regular wages," IAB-Discussion Paper 201501, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    37. John Robert Warren & Andrew Halpern-Manners, 2012. "Panel Conditioning in Longitudinal Social Science Surveys," Sociological Methods & Research, , vol. 41(4), pages 491-534, November.
    38. Colin P. Green & John S. Heywood, 2011. "Flexible Contracts And Subjective Well‐Being," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 716-729, July.
    39. Mark Wooden & Ning Li, 2014. "Panel Conditioning and Subjective Well-being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(1), pages 235-255, May.
    40. Homrighausen, Pia, 2014. "Differential pricing and private provider performance," IAB-Discussion Paper 201425, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    41. repec:cte:werepe:we1233 is not listed on IDEAS
    42. Moczall, Andreas, 2015. "The effect of hiring subsidies on regular wages," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113225, Verein für Socialpolitik / German Economic Association.
    43. Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2001. "The Role of Temporary Help Employment in Tight Labor Markets," Upjohn Working Papers 01-73, W.E. Upjohn Institute for Employment Research.
    44. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    45. Bert Van Landeghem, 2012. "Panel Conditioning and Self-Reported Satisfaction: Evidence from International Panel Data and Repeated Cross-Sections," SOEPpapers on Multidisciplinary Panel Data Research 484, DIW Berlin, The German Socio-Economic Panel (SOEP).
    46. Hamersma, Sarah & Heinrich, Carolyn J. & Mueser, Peter R., 2012. "Temporary Help Work: Compensating Differentials and Multiple Job-Holding," IZA Discussion Papers 6759, Institute of Labor Economics (IZA).
    47. Imbens,Guido W. & Rubin,Donald B., 2015. "Causal Inference for Statistics, Social, and Biomedical Sciences," Cambridge Books, Cambridge University Press, number 9780521885881, September.
    48. Christian Grund & Johannes Martin & Axel Minten, 2014. "Beschäftigungsstruktur und Zufriedenheit von Zeitarbeitnehmern in Deutschland," SOEPpapers on Multidisciplinary Panel Data Research 677, DIW Berlin, The German Socio-Economic Panel (SOEP).
    49. Sarah Hamersma & Carolyn Heinrich & Peter Mueser, 2014. "Temporary Help Work: Earnings, Wages, and Multiple Job Holding," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(1), pages 72-100, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrew E. Clark, 2018. "Four Decades of the Economics of Happiness: Where Next?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 245-269, June.
    2. René Petilliot, 2018. "How important is the type of working contract for job satisfaction of agency workers?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(3), pages 359-379, September.
    3. Dräger, Vanessa, 2015. "Do Employment Protection Reforms Affect Well-Being?," IZA Discussion Papers 9114, Institute of Labor Economics (IZA).
    4. Jennifer Ferreira, 2016. "The German temporary staffing industry: growth, development, scandal and resistance," Industrial Relations Journal, Wiley Blackwell, vol. 47(2), pages 117-143, March.
    5. Möller, Joachim, 2015. "Verheißung oder Bedrohung? : die Arbeitsmarktwirkungen einer vierten industriellen Revolution," IAB-Discussion Paper 201518, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Birgit Thomson & Lena Hünefeld, 2021. "Temporary Agency Work and Well-Being—The Mediating Role of Job Insecurity," IJERPH, MDPI, vol. 18(21), pages 1-16, October.
    7. Elke Jahn, 2015. "Don't Worry, be Flexible? - Job Satisfaction among Flexible Workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(2), pages 147-168.
    8. Koangsung Choi & Chung Choe & Yoo Bin Kim, 2023. "Impact of Korea's Non‐regular Worker Protection Act on job satisfaction," LABOUR, CEIS, vol. 37(2), pages 222-241, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. René Petilliot, 2018. "How important is the type of working contract for job satisfaction of agency workers?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(3), pages 359-379, September.
    2. René Petilliot, 2016. "How Important is the Type of Working Contract for Job Satisfaction of Agency Workers?," SOEPpapers on Multidisciplinary Panel Data Research 832, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Petilliot, René, 2016. "How important is the type of working contract for job satisfaction of agency workers?," FZG Discussion Papers 61, University of Freiburg, Research Center for Generational Contracts (FZG).
    4. Elke Jahn, 2015. "Don't Worry, be Flexible? - Job Satisfaction among Flexible Workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(2), pages 147-168.
    5. Francesco Bartolucci & Aleksandra Baschina & Giovanni S. F. Bruno & Olga Demidova & Marcello Signorelli, 2015. "Determinants of Job Satisfaction in Young Russian Workers," Discussion Papers 7_2015, CRISEI, University of Naples "Parthenope", Italy.
    6. Moreno Baruffini & Federica Origo, 2014. "Job satisfaction and flexicurity over the business cycle: evidence from Swiss individual-level data," ERSA conference papers ersa14p366, European Regional Science Association.
    7. G. S. F. Bruno & F. E. Caroleo & O. Dessy, 2014. "Temporary Contracts and Young Workers’ Job Satisfaction in Italy," AIEL Series in Labour Economics, in: Miguel Ángel Malo & Dario Sciulli (ed.), Disadvantaged Workers, edition 127, chapter 0, pages 95-120, Springer.
    8. Jahn, Elke J. & Pozzoli, Dario, 2013. "The pay gap of temporary agency workers — Does the temp sector experience pay off?," Labour Economics, Elsevier, vol. 24(C), pages 48-57.
    9. Hielke Buddelmeyer & Duncan McVicar & Mark Wooden, 2015. "Non-Standard “Contingent” Employment and Job Satisfaction: A Panel Data Analysis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 256-275, April.
    10. Chadi, Adrian & Hetschko, Clemens, 2013. "Flexibilisation without hesitation? Temporary contracts and workers' satisfaction," Discussion Papers 2013/3, Free University Berlin, School of Business & Economics.
    11. Cheryl Carleton & Mary T. Kelly, 2016. "Alternative Work Arrangements and Job Satisfaction," Villanova School of Business Department of Economics and Statistics Working Paper Series 32, Villanova School of Business Department of Economics and Statistics.
    12. Jahn, Elke Jutta & Rosholm, Michael, 2015. "The Cyclicality of the Stepping Stone Effect of Temporary Agency Employment," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113117, Verein für Socialpolitik / German Economic Association.
    13. Leandro Iván Canzio & Felix Bühlmann & Jonas Masdonati, 2023. "Job satisfaction across Europe: An analysis of the heterogeneous temporary workforce in 27 countries," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 728-754, August.
    14. Elke Jahn & Enzo Weber, 2016. "The effect of temporary help jobs on employment volatility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(1), pages 412-427, February.
    15. Gunther Tichy, 2014. "Flexicurity – ein an seiner Umsetzung scheiterndes Konzept," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(8), pages 537-553, August.
    16. Lücke, Christine, 2017. "How much does others’ protection matter? Employment protection and well-being," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168096, Verein für Socialpolitik / German Economic Association.
    17. Grund, Christian & Minten, Axel & Toporova, Nevena, 2017. "The Motivation of Temporary Agency Workers: An Empirical Analysis," IZA Discussion Papers 11229, Institute of Labor Economics (IZA).
    18. Adrian Chadi & Clemens Hetschko, 2018. "The magic of the new: How job changes affect job satisfaction," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 23-39, March.
    19. Christine Luecke & Andreas Knabe, 2020. "How much does others’ protection matter? Employment protection, future labour market prospects and well-being," Oxford Economic Papers, Oxford University Press, vol. 72(3), pages 893-914.
    20. Cheryl Carleton & Mary Kelly, 2019. "Alternative Work Arrangements and Job Satisfaction," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(3), pages 293-309, September.

    More about this item

    Keywords

    deregulation; temporary agency employment; job satisfaction;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp8803. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.