Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"

Temporary-help jobs offer rapid entry into paid employment, but they are typically brief and it is unknown whether they foster longer term employment. We utilize the unique structure of Detroit's welfare-to- work program to identify the effect of temporary-help jobs on labor market advancement....

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Main Authors: Autor, David H., Houseman, Susan N.
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Language:en_US
Published: American Economic Association 2011
Online Access:http://hdl.handle.net/1721.1/61693
https://orcid.org/0000-0002-6915-9381
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author Autor, David H.
Houseman, Susan N.
author2 Massachusetts Institute of Technology. Department of Economics
author_facet Massachusetts Institute of Technology. Department of Economics
Autor, David H.
Houseman, Susan N.
author_sort Autor, David H.
collection MIT
description Temporary-help jobs offer rapid entry into paid employment, but they are typically brief and it is unknown whether they foster longer term employment. We utilize the unique structure of Detroit's welfare-to- work program to identify the effect of temporary-help jobs on labor market advancement. Exploiting the rotational assignment of welfare clients to numerous nonprofit contractors with differing job placement rates, we find that temporary-help job placements do not improve and may diminish subsequent earnings and employment outcomes among participants. In contrast, job placements with direct-hire employers substantially raise earnings and employment over a seven quarter follow-up period.
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spelling mit-1721.1/616932022-09-28T08:23:50Z Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First" Autor, David H. Houseman, Susan N. Massachusetts Institute of Technology. Department of Economics Autor, David H. Autor, David H. Temporary-help jobs offer rapid entry into paid employment, but they are typically brief and it is unknown whether they foster longer term employment. We utilize the unique structure of Detroit's welfare-to- work program to identify the effect of temporary-help jobs on labor market advancement. Exploiting the rotational assignment of welfare clients to numerous nonprofit contractors with differing job placement rates, we find that temporary-help job placements do not improve and may diminish subsequent earnings and employment outcomes among participants. In contrast, job placements with direct-hire employers substantially raise earnings and employment over a seven quarter follow-up period. Rockefeller Foundation Russell Sage Foundation 2011-03-14T19:35:34Z 2011-03-14T19:35:34Z 2010-07 Article http://purl.org/eprint/type/JournalArticle 1945-7782 http://hdl.handle.net/1721.1/61693 Autor, David H., and Susan N. Houseman. 2010. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"." American Economic Journal: Applied Economics, 2(3): 96–128. https://orcid.org/0000-0002-6915-9381 en_US http://dx.doi.org/10.1257/app.2.3.96 American Economic Journal: Applied Economics Creative Commons Attribution-Noncommercial-Share Alike 3.0 http://creativecommons.org/licenses/by-nc-sa/3.0/ application/pdf American Economic Association MIT web domain
spellingShingle Autor, David H.
Houseman, Susan N.
Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"
title Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"
title_full Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"
title_fullStr Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"
title_full_unstemmed Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"
title_short Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"
title_sort do temporary help jobs improve labor market outcomes for low skilled workers evidence from work first
url http://hdl.handle.net/1721.1/61693
https://orcid.org/0000-0002-6915-9381
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