Do Temporary Help Agencies Help? Temporary Employment Transitions for Low-Skilled Workers

Raquel Carrasco, Ismael Gálvez-Iniesta and Belén Jerez ()

No eee2022-11, Studies on the Spanish Economy from FEDEA

Abstract: We investigate how being employed by a Temporary Help Agency (THA) affects transition rates to alternative labor market states for low-skilled workers. Our approach is based on the estimation of competing risk discrete duration models, and reveals the importance of accounting for short duration dependence. We use Spanish administrative data for the period 2005-2017. We find that having a THA contract rather than a direct-hire temporary contract increases the probability of entering into unemployment or another agency job at all durations.

Date: 2022-05
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