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Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from ‘Work First’ (2009)
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BibTeX
@MISC{Autor09dotemporary-help,
author = {David H. Autor and Susan N. Houseman},
title = {Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from ‘Work First’},
year = {2009}
}
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Abstract
Temporary-help jobs offer rapid entry into paid employment, but they are typically brief and it is unknown whether they foster longer-term employment. We utilize the unique structure of Detroit’s welfare-to-work program to identify the effect of temporary-help jobs on labor market advancement. Exploiting the rotational assignment of welfare clients to numerous nonprofit contractors with differing job placement rates, we find that temporary-help job placements do not improve and may diminish subsequent earnings and employment outcomes among participants. In contrast, job placements with direct-hire employers substantially raise earnings and employment over a seven quarter follow-up period. JEL: J24, J48, J62 Keywords: Temporary-help, welfare to work, job placement, low-skill workers, causal effects. Temporary-help firms employ a disproportionate share of low-skilled and minority U.S. workers (U.S. Department of Labor, Bureau of Labor Statistics 2005). Within the low-wage population, employment in temporary help is especially prevalent among participants in public employment and training programs. Although the temporary-help industry accounts for less than 3 percent of average daily employment in the United States, state administrative data show that
Keyphrases
low-skilled worker work first job placement temporary-help job temporary-help firm rapid entry labor statistic subsequent earnings quarter follow-up period disproportionate share causal effect employment outcome temporary-help industry account training program detroit welfare-to-work program longer-term employment u.s. department low-skill worker job placement rate direct-hire employer average daily employment j62 keywords minority u.s. worker unique structure welfare client labor market advancement state administrative data show low-wage population temporary help rotational assignment united state temporary-help job placement public employment numerous nonprofit contractor
