Do Changes in Regulation Affect Temporary Agency Workers’ Job Satisfaction?

31 Pages Posted: 9 Jun 2017

See all articles by Henna Busk

Henna Busk

Pellervo Economic Research Institute, Helsinki

Christine Dauth

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Elke J. Jahn

Institute for Employment Research (IAB); University of Bayreuth; IZA Institute of Labor Economics

Date Written: July 2017

Abstract

This paper evaluates how a reform relaxing regulations of the temporary help service sector in Germany affected job satisfaction of male temporary agency workers. We isolate the causal effect of this reform by combining a difference‐in‐difference and matching approach using rich survey data. We find that the regulatory change substantially decreased agency workers’ job satisfaction while leaving regular workers’ job satisfaction unchanged. Further analysis reveals that the negative effect on agency workers’ job satisfaction can be attributed to a decrease in wages and an increase in perceived job insecurity. These results are robust to the use of different specifications and placebo tests.

Suggested Citation

Busk, Henna and Dauth, Christine and Jahn, Elke J., Do Changes in Regulation Affect Temporary Agency Workers’ Job Satisfaction? (July 2017). Industrial Relations: A Journal of Economy and Society, Vol. 56, Issue 3, pp. 514-544, 2017, Available at SSRN: https://ssrn.com/abstract=2983493 or http://dx.doi.org/10.1111/irel.12184

Henna Busk (Contact Author)

Pellervo Economic Research Institute, Helsinki ( email )

Eerikinkatu 28 A
Helsinki, 00180
United States

Christine Dauth

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

Elke J. Jahn

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

University of Bayreuth ( email )

Bayreuth, 95447
Germany

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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