Wage effects of labor market entry via temporary work agency employment - evidence for German apprenticeship graduates

Konferenzbeitrag

In light of the remarkable number of young people who pass through a period of temp work at the beginning of their career the question arises whether labor market entry via temporary work agency (TWA) employment has any (persistent) effects on labor market outcomes. We investigate this issue using a unique dataset that contains information from the German apprenticeship system which is merged with the employment biographies of more than 8,000 apprenticeship graduates for the 1999-2007 period. We apply propensity score matching and the control function approach in order to analyze the wage gap and the medium-term wage effects of TWA employment. Our results point to a rather pronounced wage gap and persistent adverse wage effects. But we detect no significant wage disadvantage for graduates who switch to regular employment. An important percentage of graduates who enter the labor market via a temp spell does, however, not manage to permanently leave the TWA sector and thus has to bear persistent wage penalties.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Empirical Labor Economics ; No. F18-V2

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Wage Level and Structure; Wage Differentials ; Human Capital; Skills; Occupational Choice; Labor Productivity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Niebuhr, Annekatrin ; Buch, Tanja
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/79818
• Last update: 10.03.2025, 11:43 AM CET