Search Results
Journal Article
The temporary labor force
Working Paper
Wage differentials for temporary services work: evidence from administrative data
We use administrative data from the unemployment insurance system State of Washington to study the magnitude of the wage differential associated with work in the temporary services industry. We find that temp wage rates are 15% to 20% below the levels that might have been expected based on trends during other periods in workers' careers even after controlling for differences between temps and other workers. Comparing temp wages immediately before and after temp work or to the wages on non-temp jobs begun during the same period as workers were in the temp industry yields estimates of the temp ...
Working Paper
Idiosyncratic risk and aggregate employment dynamics
This paper studies how producers? idiosyncratic risks affect an industry?s aggregate dynamics in an environment where certainty equivalence fails. In the model, producers can place workers in two types of jobs, organized and temporary. Workers are less productive in temporary jobs, but creating an organized job requires an irreversible investment of managerial resources. Increasing productivity risk raises the value of an unexercised option to create an organized job. Losing this option is one cost of immediate organized job creation, so an increase in its value induces substitution towards ...
Working Paper
Measuring temporary labor outsourcing in U.S. manufacturing
Several analysts claim that firms have been using more flexible work arrangements in order to contain the costly adjustment of labor to changes in economic conditions. In particular, temporary help supply (THS) employment has increased dramatically in the last ten years. However, there is only scant evidence on the industries that are hiring this type of worker. In particular, some anecdotal evidence points to the fact that manufacturing industries have substantially stepped up their demand for THS workers since the mid-1980s. If this is true, not accounting for this flow of workers from the ...
Journal Article
Temporary canary
Growth in the temporary staffing industry fluttered during the recession, and signs of a spring pickup are hard to read.
Working Paper
Manufacturing plants’ use of temporary workers: an analysis using census micro data
Using plant-level data from the Plant Capacity Utilization (PCU) Survey, we examine how a manufacturing plant?s use of temporary workers is associated with the nature of its output fluctuations. Our empirical evidence suggests that plants choose temps over perms when they expect output to fall, which allows them to avoid costs associated with laying off permanent employees. We also found that plants whose output levels are associated with greater levels of uncertainty use more temps. The effects of other variables are also tested in order to examine the validity of various views about why ...
Journal Article
Spotlight: temporary employment
As the Texas economy expanded over the past two decades, firms increasingly relied on temporary workers to fill shortterm and seasonal staffing needs. In 1990, these employees accounted for less than 1.5 percent of Texas jobs. After peaking in 1999 and taking a recessionary dip, the number rebounded to 2.7 percent this year.
Journal Article
Temporary help services and the volatility of industry output
To gain a better understanding of how fluctuations in output influence firms' decision to hire temporary workers, the authors examine the relationship between output volatility and the use of temporary labor. They find that, all things being equal, temporary employment is higher in states with more volatile industries and lower in states with a relatively high degree of co-movement of industry output fluctuations.
Journal Article
Who are temporary nurses?
Using data from the National Sample Survey of Registered Nurses, the authors compare the characteristics of temporary and permanent registered nurses. They compare their findings for the nursing profession with characteristics of temporary and permanent workers in other occupations. They also look at the role of geography in a registered nurse?s decision to become a temporary worker.
Working Paper
Demand volatility and the lag between the growth of temporary and permanent employment
The growth rate of temporary help service employment is often considered to be a leading business cycle indicator, because the firing and hiring of temporary help workers typically lead that of permanent workers. However, few works in the literature focus on the mechanism that generates the lag between temporary and permanent growth. This paper investigates how demand volatility is related to the lag. Focusing on the relationship between a firm?s information extraction and their hiring/firing decisions, our simple model predicts that the average size of transitory demand shocks increase the ...