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Author Jahn, Elke J.
Source EconStor
Content type Text
Publisher Institute for the Study of Labor (IZA)
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword Temporary agency employment ♦ wage differential ♦ earnings ♦ Germany ♦ reform ♦ Leiharbeit ♦ Lohndifferenzierung ♦ Lohnstruktur ♦ Arbeitsrecht ♦ Reform ♦ Deutschland ♦ Wages, Compensation, and Labor Costs: General
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.
Part of series IZA Discussion Papers x3663
Learning Resource Type Article
Publisher Date 2008-01-01
Publisher Place Bonn
Rights Holder