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American Economic Journal: Applied Economics: Vol. 2 No. 3 (July 2010)
AEJ: Applied Volume. 2, Issue 3 | 
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Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"
Article Citation
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.
DOI: 10.1257/app.2.3.96
DOI: 10.1257/app.2.3.96
Abstract
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. (JEL J22, J23, J24, J31, J68)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (41.05 KB) | Online Appendix (16.60 KB)
Authors
Autor, David H. (MIT)
Houseman, Susan N. (Upjohn Institute for Employment Research, Kalamazoo, MI)
Houseman, Susan N. (Upjohn Institute for Employment Research, Kalamazoo, MI)
JEL Classifications
J22: Time Allocation and Labor Supply
J23: Labor Demand
J24: Human Capital; Skills; Occupational Choice; Labor Productivity
J31: Wage Level and Structure; Wage Differentials
J68: Mobility, Unemployment, and Vacancies: Public Policy
J23: Labor Demand
J24: Human Capital; Skills; Occupational Choice; Labor Productivity
J31: Wage Level and Structure; Wage Differentials
J68: Mobility, Unemployment, and Vacancies: Public Policy
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