Are Temporary Help Agencies changing mobility patterns in the Spanish labour market?

Abstract

This paper examines to what extent the intermediation of Temporary Help Agencies affects workers’ transitions into and out of employment in the Spanish youth labour market throughout the 1990s. The results obtained show that this type of intermediation presents a positive impact on the likelihood of leaving unemployment, although only for short-term unemployed individuals; at the same time, however, the employment hazard rate is substantially higher for agency workers. We also find that employment hazard rates were substantially affected in the 1990s by the extensive use of fixed-term contracts, although the 1997 labour market reform is found to slightly reduce this hazard rate. Finally, very young workers, women and those with low qualification levels are more likely to be affected by high labour turnover.