Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216388 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13076
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We estimate how much firms differentiate pay premia between regular and outsourced workers. We study temp agency work arrangements where pay setting has previously escaped measurement because existing datasets do not report links between user firms (the workplaces where temp workers perform their labor) and temp agencies (their formal employers). We overcome this measurement challenge by leveraging unique administrative data from Argentina with such links. We estimate that temp agency workers receive 49% of theworkplace-specific pay premia earned by regularworkers in user firms: the midpoint between the benchmark for insiders (one) and the competitive spot-labor market benchmark (zero).
Subjects: 
outsourcing
temp agencies
non-standard work arrangements
rent sharing
JEL: 
J31
J53
L24
Document Type: 
Working Paper

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