What Does a Temporary Help Service Job Offer? Empirical suggestions from a Japanese survey

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. December 2011 11-E-077
Research Project Reform of Labor Market Institutions
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The aim of this paper is to test whether or not a temporary help service (THS) job benefits workers in Japan. By applying the average treatment effect on the treated estimation and its sensitivity tests to the Japanese survey data, we obtained the following findings. First, we observed evidence that THS work negatively impacts the probability of permanent employment in subsequent waves, when compared to directly hired part-time employment. Second, THS workers earn a significantly higher hourly wage than those originally unemployed. For those seeking permanent employment in particular, THS work provides a quick way to make a living for up to two years. We conclude that THS work in Japan has provided a means to obtaining quick earnings but has not offered a stepping-stone to permanent employment.

Published: Hiroko Okudaira, Fumio Ohtake, Koichi Kume, Kotaro Tsuru, 2013. "What does a Temporary Help Service Job Offer? Empirical Suggestions from a Japanese Survey," Journal of the Japanese and International Economies, Vol. 28, pp. 37-68.