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Welfare to Temporary Work: Implications for Labor Market Outcomes

Author

Listed:
  • Heinrich, Carolyn J.

    (University of Texas at Austin)

  • Mueser, Peter R.

    (University of Missouri, Columbia)

  • Troske, Kenneth

    (University of Kentucky)

Abstract
Recent welfare reforms are prompting some state and local welfare agencies to use temporary help service firms to help place welfare recipients into jobs. Concerns have arisen that these jobs are more likely to pay low wages, provide fewer benefits, and offer less stability. We explore the effects of temporary help firms on the labor market outcomes of welfare recipients by looking at the characteristics of welfare recipients who go to work for temporary service firms and by examining their subsequent employment and welfare dynamics. We find that although welfare recipients who go to work for temporary help service firms have lower initial wages they experience faster subsequent wage growth. Two years later, their wages are only slightly below workers who initially had jobs in other sectors, and they are no more likely to be unemployed and are only slightly more likely to remain on welfare.

Suggested Citation

  • Heinrich, Carolyn J. & Mueser, Peter R. & Troske, Kenneth, 2002. "Welfare to Temporary Work: Implications for Labor Market Outcomes," IZA Discussion Papers 584, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp584
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    File URL: https://docs.iza.org/dp584.pdf
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    References listed on IDEAS

    as
    1. Julia Lane & Kelly S. Mikelson & Pat Sharkey & Doug Wissoker, 2003. "Pathways to work for low-income workers: The effect of work in the temporary help industry," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 581-598.
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    11. Robert Kornfeld & Howard S. Bloom, 1997. "Measuring Program Impacts On Earnings and Employment," JCPR Working Papers 11, Northwestern University/University of Chicago Joint Center for Poverty Research.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    welfare; temporary help;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J0 - Labor and Demographic Economics - - General
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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