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Title:Reassessing the wage penalty for temps in Germany PDF Logo
Authors:Jahn, Elke J.
Issue Date:2008
Series/Report no.:IZA Discussion Papers 3663
Abstract:As a consequence of the rapid growth of temporary agency employment in Germany, the debate on the poor working conditions of temps, specifically their remuneration, has intensified recently. Using administrative data, the paper shows that the wage gap for German temp workers is rather large and varies between occupation and region. But temps already suffer from a marked wage decline before entering the temporary help sector. Nevertheless, temporary agency employment does not leave a long lasting scar. Two years after leaving the sector, temps no longer suffer from a wage penalty. A recent change in the law set a high incentive for temporary help agencies to pay their workers according to a sectoral collective agreement. Surprisingly, the unionization of the sector could not bring the widening wage gap to a halt.
Subjects:Temporary agency employment
wage differential
earnings
Germany
reform
JEL:J30
Persistent Identifier of the first edition:urn:nbn:de:101:1-20080828392
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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