Access to training and its impact on temporary workers

Abstract

Does temporary work provide a way for individuals to improve their skill levels? Using a sample of more than 4,000 employees of US temporary staffing agencies, we analyse whether blue, white and pink-collar temps get access to company training, and the impact of skill development on wages and employee retention. We find that less than 25 per cent of temps take part in training. Educated and experienced individuals are more likely to be offered training, but lower-skilled individuals are more likely to take training when it is offered and spend more hours on it. Office workers who took part in training were more likely still to be with the agency a year later and experienced significant wage growth, while training had no effect on wage growth for blue-collar workers. Skill development that took place on the job was associated with greater wage growth for all types of temps.