Temporary Help Agencies and the Advancement Prospects of Low Earners

Research Report

Temporary Help Agencies and the Advancement Prospects of Low Earners

Abstract

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 higherbut 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.

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