European Business Schools Librarian's Group

HEC Research Papers Series,
HEC Paris

No 1527: The Wage of Temporary Agency Workers

Antonin Bergeaud (), Pierre Cahuc (), Clément Malgouyres (), Sara Signorelli () and Thomas Zuber ()
Additional contact information
Antonin Bergeaud: HEC Paris
Pierre Cahuc: National Institute of Statistics and Economic Studies (INSEE)
Clément Malgouyres: Institut des politiques publiques (PSE)
Sara Signorelli: Japan Science and Technology Agency (JST)
Thomas Zuber: Banque de France

Abstract: Using French administrative data we estimate the wage gap distribution between in-house and temporary agency workers working in the same establishment and the same occupation. The average wage gap is about 3%, but the gap is negative in more than 25% of establishment × occupation cells. We develop and estimate a search and matching model which shows that while the wage gap is largely inefficient, eliminating it reduces efficiency, as it also arises from objective factors that contribute to the efficient allocation of jobs.

Keywords: wage gap; temporary work agency; labor market frictions

JEL-codes: J24; J31; J64; J65

83 pages, July 10, 2024

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