Michael Gebel
Is a temporary job better than unemployment? A cross-country comparison based on British, German, and Swiss Panel Data

Schmollers Jahrbuch - Journal of Applied Science Studies, 2013: 133, Heft 2, S. 143-156
ISSN: 1865-5742

While many previous studies on temporary work have found disadvantages for temporary workers compared to workers with a permanent contract, this study makes the comparison to the alternative of unemployment. Applying a dynamic propensity-score matching approach based on British, German, and Swiss panel data, it is shown that taking up a temporary job increases the employment chances during the subsequent five years in Germany and the United Kingdom. Moreover, the chances of having a permanent contract remain higher and a persistent wage premium can be found. In contrast, no long-run advantages can be found in the case of the flexible Swiss labour market.