Identifying the Wage Differential in the Temporary Employment Services Sector: Evidence for South Africa using Administrative Tax Records.

Although the temporary employment services (TES) or labour broker sector has been growing in recent decades, and there has been much heated public debate on whether the jobs offered constitute 'decent work', there has been little empirical research on this sector in developing countries. In this pap...

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Publicado en:Journal of Development Studies Vol. 58; no. 10; pp. 2065 - 2089
Autores principales: Cassim, Aalia, Casale, Daniela
Formato: Artículo
Publicado: Taylor & Francis Ltd Oct2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Oct2022
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        10.1080/00220388.2022.2094252
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        atl: Identifying the Wage Differential in the Temporary Employment Services Sector: Evidence for South Africa using Administrative Tax Records.
      aug:
        au:
          Cassim, Aalia
          Casale, Daniela
        affil:
          National Treasury, Pretoria, South Africa
          University of the Witwatersrand, Johannesburg, South Africa
      su:
        South Africa
        Wage differentials
        Temporary employment
        Service industries
        Job descriptions
        Income inequality
        Income tax
        Employment agencies
      sug:
        subj:
          Wage differentials
          Temporary employment
          Service industries
          Job descriptions
          Income inequality
          Income tax
          South Africa
          Employment placement agencies and executive search services
          Employment Placement Agencies
          Federal labour and employment services
          Provincial labour and employment services
          Service Establishment Equipment and Supplies Merchant Wholesalers
          Employment agencies
      keyword:
        administrative data
        Temporary employment services
        wage differentials
        administrative data
        Temporary employment services
        wage differentials
      ab: Although the temporary employment services (TES) or labour broker sector has been growing in recent decades, and there has been much heated public debate on whether the jobs offered constitute 'decent work', there has been little empirical research on this sector in developing countries. In this paper, we use a unique administrative panel dataset based on income tax records for the period 2011–2015 in South Africa, to explore the wage and benefits differentials between TES and non-TES workers. We find a substantial gross wage differential of around 88 per cent, which remains high at 34 per cent even after accounting for worker fixed effects and controlling for the individual and job characteristics available in the data. We also show that TES workers are much less likely to report benefit contributions than non-TES workers, and when they do, their contributions as a percentage of the gross wage are on average much lower than among non-TES workers. These results add substance to the arguments that TES workers are in a more precarious position than non-TES workers, and that this form of employment contributes to high levels of labour market inequality in South Africa.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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