NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Miguel Pascuel Plotkin

Vancouver School of Economics
University of British Columbia
6000 Iona Dr
Vancouver, BC V6T 1L4
Canada
Tel: (604) 822-2876

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Vancouver School of Economics, University of British Columbia

NBER Working Papers and Publications

March 2020Paying Outsourced Labor: Direct Evidence from Linked Temp Agency-Worker-Client Data
with Andres Drenik, Simon J├Ąger, Benjamin Schoefer: w26891
We estimate how much firms differentiate pay premia between regular and outsourced workers. We study temp agency work arrangements where pay setting has previously escaped measurement because existing datasets do not report links between user firms (the workplaces where temp workers perform their labor) and temp agencies (their formal employers). We overcome this measurement challenge by leveraging unique administrative data from Argentina with such links. We estimate that temp agency workers receive 49% of the workplace-specific pay premia earned by regular workers in user firms: the midpoint between the benchmark for insiders (one) and the competitive spot-labor market benchmark (zero).
 
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