Moreover, the fact that some individuals spend extended periods working as temps should not necessarily be taken as an indication of a problem. 2 Preferences Many individuals choose temporary help work precisely because they want a regular job. For others, it functions as a safety net after a job loss, or provides a temporary source of income allowing an extended job search. With its role of matching workers and employers, expansion of the temporary help industry has beneficial consequences for the economy. Temp Workers Are Not Cheap Labor Most of the difference in average wages between temps and regular workers can be explained by their different characteristics.
Temps are younger, less educated, less experienced and have less stable work histories.
Temps are more likely to be retirees, students, concentrated in lower paying occupations and work part-time. Using data from 1993, Federal Reserve researchers Lewis Segal and Daniel Sullivan conclude that what appears to be a 22 percent wage gap between temps and regular workers almost completely disappears when these and other relevant differences are considered. 5 Growth in computer-related occupations has been particularly rapid with the number of temporary computer systems analysts and engineers increasing by almost 41 percent between 1995 and 1997. 6 Many of the temps in the computer field earn higher wages than their permanent counterparts, and they are frequently paid extra for overtime, unlike permanent employees. For example, nearly half of temps have health insurance coverage, primarily from their parents' or spouses' plans.