What does a temporary help service job offer? Empirical suggestions from a Japanese survey

Abstract

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.

The Japanese labour market during the global financial crisis and the role of non-standard work: A micro perspective

“…Dispatched workers are persons employed by temporary worker agencies who are sent to firms on a fixedterm basis. See Okudaira, Ohtake, Kume and Tsuru (2013) for an in-depth analysis of the role of temporary work agencies in Japan.…”

Employment Status Persistence in the Japanese Labour Market

“…Okudaira et al . () investigated the effect of being a dispatch employee on the probability of entering regular employment and concluded that employment through a dispatch agency is not a stepping stone to regular employment. Although not investigated in their study, this leaves open the possibility that introduction of the law may have increased the amount of non‐standard employment in Japan.…”

Procrastinators and hyperbolic discounters: Transition probabilities of moving from temporary into regular employment

“…Our ATT results indicate that the TAW experience leads to a less smooth transition to regular employment and longer periods of non-regular employment, compared to other non-regular workers with no experience in the TAW sector. Okudaira et al (2013) found that, in comparison to directly hired part-time workers, temporary workers have a higher probability of becoming unemployed in the subsequent waves of their survey. Based on these findings, it appears that the TAW employment does not equate to termination of one's unemployment status.…”

“…A few studies have empirically examined the function of temporary work toward regular employment in Japan. Notably, Okudaira et al (2013) investigated the empirical effect of temporary help service work on the probability of obtaining permanent employment or becoming unemployed in the subsequent waves of their survey, using the data from an Internet survey conducted in Japan from 2008 to 2011. Their findings suggest that temporary work may not have any ''stepping stone'' effect on the permanent employment.…”