scholarly journals Temporary Help Service Firms' Use of Employer Tax Credits: Implications for Disadvantaged Workers' Labor Market Outcomes

Author(s):  
Sarah Hamersma ◽  
Carolyn J. Heinrich
2010 ◽  
Vol 2 (3) ◽  
pp. 96-128 ◽  
Author(s):  
David H Autor ◽  
Susan N Houseman

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)


Author(s):  
Carla Calero ◽  
Veronica Gonzales ◽  
Yuri Soares ◽  
Jochen Kluve ◽  
Carlos Henrique Leite Corseuil

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