Are Temporary Workers Discriminated Against? Evidence From Europe*

Comi, Simona; Grasseni, Mara

doi:10.1111/j.1467-9957.2011.02231.x

Cited by 53 publications

(38 citation statements)

References 23 publications

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“…(), among others, study the wage penalty for temporary jobs along the entire wage distribution both in Spain and in Germany and report a substantial difference between these two countries: in Spain the negative effects associated to temporary contracts are substantially similar across the distribution of wages, whereas in Germany the differences in earnings between permanent and fixed‐term workers penalize low‐skilled workers more than high‐skilled ones. Similar findings are described by Comi and Grasseni () who employ EU‐Statistics on Income and Living Conditions (EU‐SILC) data for European countries to examine whether temporary workers are discriminated with respect to their permanent counterpart.…”

Section: Introductionsupporting

confidence: 77%

The Implications of Temporary Jobs on the Distribution of Wages in Italy: An Unconditional IVQTE Approach

Bosio

2013

Labour

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Using Italian data, this paper investigates the wage implications of temporary jobs across the whole pay profile using unconditional quantile regression (UQR) models. Results clearly indicate that the wage penalty associated to temporary jobs is significantly larger at the bottom of wage profile and is almost absent for high-wage jobs. This is in line with the sticky floors hypothesis, supporting the idea that the wage gap for temporary employees depends on their position in the wage distribution for low-paid jobs. To recover a causal interpretation, I employ an instrumental variable (IV) strategy. I adopt the unconditional instrumental variable quantile treatment effects (IVQTE) estimator proposed by Frolich and Melly, which corrects for endogenous selection in temporary contracts. The IVQTE estimates yield similar results to standard UQR, even if the wage penalty is larger in size at the bottom of the wage distribution and disappears at the top quantiles. This evidence highlights that policies aimed at increasing flexibility may reinforce the two-tier nature of the Italian labour market and the relative wage inequality.I would like to thank Marco Leonardi, Blaise Melly, Matteo Picchio, Massimiliano Bratti, Fabio Parisi, and two anonymous referees for useful comments and suggestions.

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Section: Introductionsupporting

confidence: 77%

The Implications of Temporary Jobs on the Distribution of Wages in Italy: An Unconditional IVQTE Approach

Bosio

2013

Labour

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“…A major shortcoming of previous Australian studies is that they are focussed on the mean of the wage distribution. Evidence from other countries, however, tells us that the wage effects of temporary employment may differ between low‐ and high‐paid workers (Bosio , ; Comi and Grasseni ; Mertens et al. ; Mertens and McGinnity ; Santangelo ).…”

Section: State Of Researchmentioning

confidence: 99%

“…; Mertens and McGinnity ). Second, given the union wage premium is larger for low‐paid than high‐paid workers (Cai and Liu ; Schmitt ), it follows that the role of unions in widening the wage gap between permanent and temporary workers is also larger among low‐paid workers (Bosio ; Comi and Grasseni ). Bargaining for compensating wage differentials also presupposes that workers can choose between two jobs, instead of between a temporary job and unemployment (Mertens et al.…”

Section: Theoretical Considerationsmentioning

confidence: 99%

The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data

Laß

Wooden

2019

Brit J Industrial Rel

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This study uses panel data for Australia to estimate the wage differential between workers in temporary jobs and workers in permanent jobs. It is the first study to use unconditional quantile regression methods in combination with fixed effects to examine how this gap varies over the entire wage distribution. While the wages of fixed-term contract workers are found to be similar to those of permanent workers, low-paid casual workers experience a wage penalty and high-paid casual workers a wage premium compared to their permanent counterparts. Temporary agency workers also usually receive a wage premium, which is particularly large for the most well paid.

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“…Empirical results typically document a significant wage gap between employees with FTCs and permanent contracts (PCs). This gap has been attributed to substantial heterogeneity across jobs and/or individuals (Bosio 2014;Brown and Sessions 2003;Comi and Grasseni 2012;De la Rica 2004). Yet a significant fraction remains unexplained after controlling for observable heterogeneity.…”

Section: How Do Ftcs Affect Wages?mentioning

confidence: 99%

Short Notice, Big Difference? The Effect of Temporary Employment on Firm Competitiveness across Sectors

Giuliano¹,

Kampelmann²,

Mahy³

et al. 2017

Brit J Industrial Rel

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This paper is one of the first to examine how the use of fixed-term employment contracts (FTCs) affects firm competitiveness (i.e. productivity, wages and profits) while controlling for key econometric issues such as time-invariant unobserved workplace characteristics, endogeneity and state dependence. We apply dynamic panel data estimation techniques to detailed Belgian linked employer-employee data covering all years from 1999 to 2010. Results show that the effects of FTCs on firm competitiveness vary across sectors: while temporary employment is found to enhance productivity and profits in (labourintensive) services, this is not the case in manufacturing and construction. AbstractThis paper is one of the first to examine how the use of fixed-term employment contracts (FTCs) affects firm competitiveness (i.e. productivity, wages and profits) while controlling for key econometric issues such as time-invariant unobserved workplace characteristics, endogeneity and state dependence. We apply dynamic panel data estimation techniques to detailed Belgian linked employer-employee data covering all years from 1999 to 2010. Results show that the effects of FTCs on firm competitiveness vary across sectors: while temporary employment is found to enhance productivity and profits in (labour-intensive) services, this is not the case in manufacturing and construction.

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Are Temporary Workers Discriminated Against? Evidence From Europe*

Cited by 53 publications

References 23 publications

The Implications of Temporary Jobs on the Distribution of Wages in Italy: An Unconditional IVQTE Approach

The Implications of Temporary Jobs on the Distribution of Wages in Italy: An Unconditional IVQTE Approach

The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data

Short Notice, Big Difference? The Effect of Temporary Employment on Firm Competitiveness across Sectors

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