What Does a Temporary Help Service Offer?: Preliminary evidence from Japan

Author Name OKUDAIRA Hiroko  (Okayama University) /OHTAKE Fumio  (Osaka University) /KUME Koichi  (Nagoya University of Commerce and Business) /TSURU Kotaro  (Senior Fellow, RIETI)
Creation Date/NO. April 2011 11-J-055
Research Project Reform of Labor Market Institutions
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The aim of this paper is to provide a preliminary test of whether or not temporary help service (THS) work benefits workers in Japan. By applying the simple ATT (average treatment effect on the treated) method to Japanese survey data, we obtained two tentative findings.

First, we cannot deny the possibility that THS work has a negative impact on the probability of being permanently employed in subsequent years, when compared to direct-hire part-time jobs. Second, a comparison between THS workers and unemployed persons at a certain point of time shows that those working a THS job can expect a significantly higher income in the following 18 months than those who are unemployed. We conclude that THS work in Japan has provided a means to obtaining quick earnings, but it has not served as a stepping stone to permanent employment.