Reassessing the Wage Penalty for Temps in Germany

摘要: As a consequence of the rapid growth temporary agency employment in Germany, debate on poor working conditions temps, specifically their remuneration, has intensified recently. Using administrative data, paper shows that wage gap for German temp workers is rather large and varies between occupation region. But temps already suffer from marked decline before entering help sector. Nevertheless, does not leave long lasting scar. Two years after leaving sector, no longer penalty. A recent change law set high incentive agencies to pay according sectoral collective agreement. Surprisingly, unionization sector could bring widening halt.