Temporary talent: Wage penalties among highly educated temporary workers in Canada

Abstract

Temporary employment (TE) arrangements have become increasingly common in Canada among both high- and low-skilled workers. In this study, we examine the prevalence and earnings effects of TE across education levels with a specific focus on highly educated workers. We also examine the earnings effects of TE across the earnings distribution. We find that higher levels of schooling are negatively associated with the probability of TE. However, the earnings discounts for temporary work are significant and increase in magnitude for individuals with higher levels of educational attainment. For highly educated workers at the top end of the earnings distribution, the discount associated with being in a temporary job is large enough to substantially reduce, although not entirely negate, the sizeable earnings premiums associated with higher levels of education.