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Labor in the New Economy$
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Katharine G. Abraham, James R. Spletzer, and Michael Harper Harper

Print publication date: 2010

Print ISBN-13: 9780226001432

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226001463.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 19 September 2021

What Do We Know about Contracting Out in the United States?

What Do We Know about Contracting Out in the United States?

Evidence from Household and Establishment Surveys

(p.267) 7 What Do We Know about Contracting Out in the United States?
Labor in the New Economy

Matthew Dey

Susan Houseman

Anne Polivka

University of Chicago Press

This chapter focuses on contracting out that occurs within the United states, known as domestic contracting out or outsourcing. A factor for the motivation for domestic outsourcing is stated to be the large role that contract companies, especially temporary help agencies, play in the adjustment to the business cycle. Other reasons for the greater reliance on contracting out include reduction in hiring and recruiting costs and the elimination or reduction of layoffs by client companies, which may reduce companies' unemployment insurance costs or their exposure to unjust dismissal lawsuits. Employment services provide only a partial picture of contracting out, and the information provided by various sources of data on the employment services sector is often inconsistent. The Contingent Worker Supplements (CWS) allow individuals to identify themselves as working for an employer, but questions in the CWS are designed primarily to capture situations in which contract workers work at one client's work site.

Keywords:   contracting out, United States, domestic outsourcing, contingent worker supplements, cost control

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