Paying Outsourced Labor: Direct Evidence from Linked Temp Agency-Worker-Client Data

Arbeitspapier

We estimate how much firms differentiate pay premia between regular and outsourced workers. We study temp agency work arrangements where pay setting has previously escaped measurement because existing datasets do not report links between user firms (the workplaces where temp workers perform their labor) and temp agencies (their formal employers). We overcome this measurement challenge by leveraging unique administrative data from Argentina with such links. We estimate that temp agency workers receive 49% of theworkplace-specific pay premia earned by regularworkers in user firms: the midpoint between the benchmark for insiders (one) and the competitive spot-labor market benchmark (zero).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 13076

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Labor-Management Relations; Industrial Jurisprudence ; Contracting Out; Joint Ventures; Technology Licensing
• Subject: outsourcing ; temp agencies ; non-standard work arrangements ; rent sharing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Drenik, Andres ; Jäger, Simon ; Plotkin, Pascuel ; Schoefer, Benjamin
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/216388
• Last update: 10.03.2025, 11:42 AM CET