ARE TEMPORARY HELP AGENCIES CHANGING MOBILITY PATTERNS IN THE SPANISH LABOUR MARKET?

Abstract

This paper examines to what extent Temporary Help Agency intermediation in the labour market affects workers' transitions into and out of employment in the Spanish youth labour market throughout the nineties. Results obtained show that this 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 90's by the extensive use of fixed-term contracts, although the 1997 labour market reform is found to reduce this hazard rate. Finally, very young workers, women and those with lower qualification levels are more likely to be affected by higher labour turnover.