Labor Economics Commons^™

Do Temporary Help Jobs Improve Labor Market Outcomes? A Pilot Analysis With Welfare Clients, David H. Autor, Susan N. Houseman

Reports

We draw upon administrative data from an unusual policy experiment in the state of Michigan to study the effects of temporary agency employment among welfare-to-work clients on job retention, program recidivism, and earnings. To identify these effects, we exploit the fact that welfare-to-work clients in one Michigan county were randomly assigned to service providers who had substantially different placement rates in temporary agencies but otherwise similar policies. Our findings indicate that moving welfare clients who otherwise would have been unemployed into temporary agency jobs provides some benefits to these workers, primarily by increasing their short-term earnings. Temporary agency jobs also …