Discussion Paper Details

Please find the details for DP14517 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

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

Author(s): Andres Drenik, Simon Jäger, Pascuel Plotkin and Benjamin Schoefer

Publication Date: March 2020


Programme Area(s): Development Economics and Labour Economics

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).

For full details and related downloads, please visit:

Bibliographic Reference

Drenik, A, Jäger, S, Plotkin, P and Schoefer, B. 2020. 'Paying Outsourced Labor: Direct Evidence from Linked Temp Agency-Worker-Client Data'. London, Centre for Economic Policy Research.