Paying Outsourced Labor: Direct Evidence from Linked Temp Agency-Worker-Client Data

Andres Drenik (), Simon Jäger, Pascuel Plotkin () and Benjamin Schoefer
Additional contact information
Andres Drenik: University of Texas at Austin
Pascuel Plotkin: University of British Columbia

No 13076, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 the workplace-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).

Keywords: outsourcing; non-standard work arrangements; temp agencies; rent sharing (search for similar items in EconPapers)
JEL-codes: J31 J53 L24 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2020-03
New Economics Papers: this item is included in nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published - published in: Review of Economics and Statistics, 2023, 105 (1), 206–216.

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Related works:
Journal Article: Paying Outsourced Labor: Direct Evidence from Linked Temp Agency-Worker-Client Data (2023)
Working Paper: Paying Outsourced Labor: Direct Evidence from Linked Temp Agency-Worker-Client Data (2020)
Working Paper: Paying Outsourced Labor: Direct Evidence from Linked Temp Agency-Worker-Client Data (2020)
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