Analyses of the Pay Gap in Temporary Employment Based on the 2023 Earnings Survey

Martin Biewen, together with a team from the University of Tübingen and on behalf of the Federal Association of Personnel Service Providers (GVP), examined wage differentials between temporary agency workers and other employees in comparable positions. Using regression models, it is quite possible to calculate which employee characteristics influence pay—such as company tenure, age, nationality, etc. The analysis concludes that the pay gap between temporary agency workers and other employees, often cited in public debate, narrows significantly when taking into account the characteristics that explain differences in compensation. This may sound familiar; a similar question arises in the debate about the gender pay gap. You can find the analysis on the GVP website.