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

Andres Drenik, Simon Jäger, Miguel Pascuel Plotkin and Benjamin Schoefer

No 26891, NBER Working Papers from National Bureau of Economic Research, Inc

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 regular workers in user firms: the midpoint between the benchmark for insiders (one) and the competitive spot-labor market benchmark (zero).

JEL-codes: J31 J53 K31 L24 M52 M54 (search for similar items in EconPapers)
Date: 2020-03
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Citations: View citations in EconPapers (18)

Published as Andres Drenik & Simon Jäger & Pascuel Plotkin & Benjamin Schoefer, 2023. "Paying Outsourced Labor: Direct Evidence from Linked Temp Agency-Worker-Client Data," The Review of Economics and Statistics, vol 105(1), pages 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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