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.
