Reassessing the wage penalty for temps in Germany

Arbeitspapier

As a consequence of the rapid growth of temporary agency employment in Germany, the debate on the poor working conditions of temps, specifically their remuneration, has intensified recently. Using administrative data, the paper shows that the wage gap for German temp workers is rather large and varies between occupation and region. But temps already suffer from a marked wage decline before entering the temporary help sector. Nevertheless, temporary agency employment does not leave a long lasting scar. Two years after leaving the sector, temps no longer suffer from a wage penalty. A recent change in the law set a high incentive for temporary help agencies to pay their workers according to a sectoral collective agreement. Surprisingly, the unionization of the sector could not bring the widening wage gap to a halt.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 3663

Classification and Topics

• Classification: Wirtschaft ; Wages, Compensation, and Labor Costs: General
• Subject: Temporary agency employment ; wage differential ; earnings ; Germany ; reform ; Leiharbeit ; Lohndifferenzierung ; Lohnstruktur ; Arbeitsrecht ; Reform ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jahn, Elke J.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/34999
• URN: urn:nbn:de:101:1-20080828392
• Last update: 10.03.2025, 11:44 AM CET