Pascuel Plotkin

We estimate how much firms differentiate pay premia between regular and outsourced workers in temp agency work arrangements. We leverage unique Argentinian administrative data that feature links between user firms (the workplaces where temp workers perform their labor) and temp agencies (their formal employers). We estimate that a high-wage user firm that pays a regular worker a 10% premium, pays a temp worker on average only a 4.9% premium, compared to what these workers would earn in a low-wage user firm in their respective work arrangements---the midpoint between the benchmarks for insiders (one) and the competitive spot-labor market (zero).

We estimate the impact of a labour demand shock on Canadian recently graduated bachelor students. We leverage a unique Canadian administrative data that features links between individuals post-secondary education and their tax-files. We estimate that a standard deviation increase in school-major specific labour demand, increased earnings immediately in a magnitude between 2.3 and 2.6 log points, with persistent and increasing effects throughout the oil shock. Additionally, the labour demand shock had effects on other labour market outcomes such as unemployment or self-employment. In terms of schooling, school-major specific labour demand had a positive effect on dropouts, which remarks the importance of considering the outside option of students when studying school enrollment.