Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302641 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17124
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using French administrative data we estimate the wage gap distribution between in-house and temporary agency workers working in the same establishment and the same occupation. The average wage gap is about 3%, but the gap is negative in more than 25% of establishment × occupation cells. We develop and estimate a search and matching model which shows that while the wage gap is largely inefficient, eliminating it reduces efficiency, as it also arises from objective factors that contribute to the efficient allocation of jobs.
Subjects: 
wage gap
temporary work agency
labor market frictions
JEL: 
J24
J31
J64
J65
Document Type: 
Working Paper

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