Citation URL: http://www.urban.org/FredrikAndersson

In this paper we use a very large matched database on firms and employees to analyze the use of temporary agencies by low earners and its impact on their employment outcomes. Our results show that, while temp workers have lower earnings than others while working at these agencies, their subsequent earnings are often higher—but only if they manage to gain stable work with other employers. Furthermore, the positive effects seem mostly to occur because those working for temp agencies subsequently gain access to higher-wage firms, and they persist over time.

This study examines the effect of employer characteristics, types of coworkers, and residential location in promoting the advancement of Temporary Assistance for Needy Families (TANF) recipients in the labor market. It is the first to use new, large integrated employer-employee data--with new measures of worker quality and firm pay premia--to examine labor market outcomes and provide evidence that proactive welfare agencies may use in decision making.

This paper presents an analysis of workers who persistently have low earnings in the labor market over a period of three or more years. Some of these workers manage to escape from this low-earning status over subsequent years, while many do not. Using data from the Longitudinal Employer Household Dynamics (LEHD) program at the U.S. Census Bureau, the authors analyze the characteristics of persons and especially of their firms and jobs that enable some to improve their earnings status over time.

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