An alternative look at temporary workers, their choices, and the growth in temporary employment

We examine temporary workers (temps), their choices, and growth in temporary employment. We find that some people choose a temporary job because they desire greater schedule flexibility, particularly students and women with children. For most, however, weaker permanent job opportunities drive them into temporary positions. Using the 1995 and 1997 Current Population Surveys (CPS) we find that both the percentage of the work force in temporary jobs and the absolute number of temps declined when applying a new CPS-based measure of temporary. This is in stark contrast to the rising percentage found in several previous studies when looking only at workers in personnel supply services and clearly questions prior claims and concerns about growth in the temporary work force. The authors thank Petra Todd for her help and valuable suggestions and comments. We are also grateful to Richard Rogerson for his comments. All remaining mistakes are ours.     

Mechanisms of control in the temporary help service industry

As firms increasingly rely on temporary clerical workers, previous control mechanisms centered in the workplace no longer are sufficient to maintain labor discipline and ensure production quality and uniformity. Through participant observation of four temporary help service firms and two placement sites, this case study reveals forms of control that differ from those in place at more commonly studied manufacturing enterprises. Temporary help service firms have developed a dualistic form of control that operates on two levels: (1) a decentralized level, whereby the temporary help service firm indirectly controls workers; and (2) a bureaucratic level, whereby the temporary help service firm rationalizes jobs in the organization's hierarchy by delimiting a set of tasks, competencies, and responsibilities.     

WORK HOUR MISMATCH AND JOB MOBILITY: ADJUSTMENT CHANNELS AND RESOLUTION RATES

This paper analyses the role of job changes in overcoming work hour mismatches (i.e., differences between actual and desired work hours). It addresses two, yet neglected, questions: (1) How do adjustments in desired work hours, additionally to adjustments in actual work hours, contribute to the resolution of these mismatches? and (2) Does the well‐documented increased work hour flexibility of job movers help to actually resolve work hour mismatches? We find that job change increases the probability of resolving work hour mismatches, but far less than expected with free choice of hours across jobs. (JEL J21, J22)     

The changing nature of work among the self-employed in the 1990s: Evidence from Britain

We use British Household Panel Survey (BHPS) data to examine the changing nature of work among the British self-employed in the 1990s. In the process we uncover several surprises and puzzles given the body of “received wisdom” about growing flexibility of work and employment patterns in that decade. Conventional wisdom implies three hypotheses: (1) growing female self-employment; (2) growing flexibility of employment involving more part-time work, temporary employment, and multiple job holding; and (3) a convergence in work hours between males and females. The principal surprises are that the data refute the first two hypotheses outright and provide only partial support for the third. An outstanding puzzle is why own-account, self-employed males work such long hours for wages that are generally lower than those of employees. At the same time, the self-employed are less satisfied with their work hours than employees are, despite being more satisfied on average with other characteristics of their jobs and with their lives in general. We estimate a panel data work hours equation by instrumental variables in an effort to resolve the puzzle and to shed light on self-employed labor supply behavior.     

The Effect of Unemployment Insurance on Temporary Help Services Employment

A model with fixed effects and controls for state-specific linear time trends is developed to analyze the influence of state unemployment insurance taxes on temporary help services employment using state level panel data from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages. Prior research has shown that imperfect experience rating of unemployment insurance taxes increases temporary layoffs and that, conversely, more extensive experience rating leads to a decrease in temporary layoffs. The current analysis demonstrates that more extensive experience rating increases temporary help services agency-intermediated temporary employment. To the extent that the increase in temporary help services employment represents a substitution of temporary help services jobs for traditional direct hire jobs, it implies a negative effect on job quality. Steps to address low unemployment insurance recipiency rates by temporary help services workers may alleviate the impact of unemployment insurance tax structures on temporary help services employment.     

Temporary employment experiences of women on welfare

Females with recent participation in public welfare are a disproportionate and growing share of temporary help services firm employees. Research documenting low earnings, frequent job transitions, and low benefit rates among temporary workers has raised concerns that welfare recipients taking these jobs might have poorer labor market outcomes than those entering permanent positions. My findings show that a majority of welfare recipients working in temporary jobs were satisfied with their pay and working conditions and did not earn much less than those in other jobs. They did report, however, high levels of dissatisfaction with the lack of employment benefits received, and their annual earnings were still very low, reflecting chronic job instability that is endemic to the welfare population.     

The Influence of Temporary Employment on Unemployment Exits in a Competing Risks Framework

Using Spanish longitudinal data from the period 1992–2004, this paper examines labour market transitions of the newly unemployed in order to investigate the determinants of unemployment duration in a competing risks framework with four destination states: temporary employment, permanent employment, self-employment and inactivity. Special emphasis is placed on the influence of previous job variables. We find that individuals who become unemployed due to the end of a temporary contract are more likely to exit unemployment by finding another temporary job and less likely to exit through permanent jobs, self-employment or inactivity. However, long tenures in temporary jobs enhance the probability of finding a permanent employment. Moreover, the length of the previous job, when it terminates due to a layoff, hinders the probability of moving to employment (either permanent or temporary).     

Unions,incentive systems,and job design

I model the relationship between incentive systems and job design and how unions influence both. The basic idea is that it is easier to monitor worker effort for jobs designed to be routine and inflexible. Pay based on monitoring is used in this scenario rather than incentive pay based on production. Jobs with worker flexibility and autonomy call for incentives based more on output. Unions typically oppose output-based pay, thus inducing job design change. The empirical work supports this view and shows that incentive pay is much less likely for union workers and unions have a clear negative effect on job characteristics that lead to use of incentive pay. In particular, union jobs are more repetitive, have more measurable criteria, and involve less judgmental criteria and less data analysis.     

Legal and policy implications of the flexible employment relationship

V. Conclusion The flexible employment relationship encompassing as it does so many different kinds of arrangements — temporary, leased, homeworking, telecommuting, jobsharing, and consulting workers — is not a good candidate for the kinds of across-the-board regulatory proposals that are presently popular. Although the negatives of involuntary contingent employment receive considerable attention (relatively lower wages, the absence of access to benefit plans), the advantages (mutual flexibility and the opportunity to transmit/receive training and experience) do not. Proposals to raise the relative cost of employing contingent workers need to address each of the following three concerns: First, the mix of “employees” and independent contractors some of whom voluntarily fill the ranks of contingent workers; second, the absence of any meaningful job protections or legal claims to nonmandated benefits by mostcore workers; and, finally, the possibility that in some cases contingent workers’ wages operate asde facto sub-minimum training wage. More empirical work is needed in order to evaluate each of these issues. In the meantime, a case has yet to be made for altering the existing regulatory framework facing employers of flexible workers. I am indebted to Joseph Salama for research assistance and to Michael Harper, Keith N. Hylton, Stephen Marks, and Larry Yackle for helpful comments.     

Contingent Work Rising: Implications for the Timing of Marriage in Japan

Employment has become increasingly precarious in developed countries, meaning that, for many young adults, jobs provide neither benefits nor security, more work is part time, and employers are increasingly hiring workers from temporary help agencies and contract companies rather than as employees of their own company. These changes in employment relations have profound effects on gender roles and on family transitions of young adults, especially young men and in particular in countries such as Japan, where there are rigid family norms and the male‐breadwinner tradition still prevails. The authors examined the effects of the experience of non‐regular work on the timing of marriage and whether this differs by sex. Using recent life history data from Japan, they found that men working in non‐regular jobs are especially likely to postpone marriage. The implications of the growth of precarious work for changes in work and family institutions in Japan are discussed.     

Temporary Help Firms as Entrepreneurial Actors

Competing explanations of growth in the temporary help supply (THS) industry stress its role in meeting the needs and desires of workers vs. those of employers. Until now, less attention has been paid the growth agenda of the THS industry itself. Yet evidence from a study of THS firms in Wisconsin suggests that their entrepreneurial efforts may be an important, overlooked factor driving the industry's expansion. This paper examines the growth and geographic dispersal of Wisconsin's THS firms through a theoretical framework of entrepreneurial action. Data from in-depth interviews with their owners and managers reveal strenuous efforts to create new markets for THS services. THS firms' highly proactive stance is reflected in their decisions about where to locate, efforts to become part of local social networks, and innovative approaches to product development and marketing. Previous studies have implied that THS firms opportunistically and reactively respond to changes in labor supply or demand factors. This study finds THS firms actively promoting their own growth, intervening in labor markets to forge a role for themselves as employment intermediaries and gatekeepers to permanent jobs.     

Social protection for retirees: the diminishing role of employers

Jobs are changing in ways that will reduce benefits for retirees. This paper explores the variety of pressures that will tend to produce this result. One major factor is that employers have been responding to cost pressures and the need for flexibility by redesigning jobs. There has been a trend--which is likely to continue--toward more part-time and temporary jobs, more subcontracting, and more contingent-pay systems. The consequences are complex and not all bad, but for retirees the tendency will be toward fewer, less generous, or less secure benefits. As workers approach retirement age facing the prospect of diminished benefits, increasing numbers of them will have to choose work to maintain their standard of living. At the same time, demographic pressures will gradually push employers to seek new pools of workers, including retirees. Gradually, employers are likely to provide fewer social-protection benefits to older people, but more employment opportunities.     

WORKING TO EXIT POVERTY WHILE CARING FOR CHILDREN'S HEALTH AND DEVELOPMENT IN VIETNAM

Since the implementation of economic reforms in 1986, levels of urbanization, industrialization, and women's labour force participation have increased in Vietnam. This article focuses on the experiences of parents in Vietnam and how labour and social conditions affect their ability to work and exit poverty while caring for their children's health and development. We interviewed a sample of 147 parents in Ho Chi Minh City using in-depth, semi-structured questionnaires. Sixty-three percent of parents had faced loss of income or promotions or had difficulty retaining jobs because they had to care for children. Fifty-eight percent of parents lost income while caring for their sick children because they had to take unpaid leave from work to care for their children or because they had to decrease productivity if they were able to continue working. Fifty percent of parents with school-age children experienced barriers to helping with homework, to attending meetings, or to participating in other aspects of their children's education. The aftermath of the Vietnamese – American War affected parents through loss of extended family members, limiting access to a major traditional source of support. The war had affected other parents by preventing them from completing their education, which left them with job choices that offer little or no work benefits. Although Vietnam has made significant progress in providing early childhood care and education and legislating labour laws, working families’ experiences demonstrate the need to ensure that paid leave and work flexibility policies are available and implemented in all work sectors and to expand affordable, quality child care in order to help low-income working parents in Vietnam meet work demands and exit poverty while meeting their children's needs.     

Computerized surveillance in the workplace: Forms and distributions

The use of computers to monitor job performance has attracted much comment, from social scientists and others. In this analysis of a representative sample of greater New York firms, we show that this use of computing is both widespread and applied to a wide variety of jobs. Contrary to some suggestions, it is does not occur exclusively in large firms with particularly high-tech computing applications. Instead, it appears in all kinds of firms, as an outgrowth of management efforts to control and rationalize work. Most cases of computerized job surveillance identified in this sample are part of one of three basic organizational processes: sales analysis, job tracking, or inventory control.     

Information and communication technology adoption in micro and small firms: Can internet access improve labour productivity?

The rapid spread of information and communication technologies (ICT) may increase firms’ productivity with important consequences for job creation and for economic growth. This article contributes to this discussion by analysing the impact of internet adoption on labour productivity and the mechanisms shaping this relationship in Peruvian micro and small manufacturing firms over the period 2011–2013. The article estimates a reduced form where labour productivity is a function of internet adoption and other explanatory factors. Internet adoption is instrumented using a measure of the availability of financial opportunities for micro and small firms in Peru. Findings indicate that internet adoption: (a) increases firms’ labour productivity; (b) reallocates employment away from temporary administrative workers and non‐remunerated workers and expands employment of permanent production workers; (c) leads to the formalization of labour relationships, to the implementation of new organizational practices and to the improvement of training measures. While changes in employment and formalization of workers are linked to labour productivity gains, increases in training measures and organizational changes do not generate any additional productivity increase. Policies oriented to promote the adoption of ICT in micro and small firms can be beneficial to close the productivity gap with larger firms in Peru. Moreover, policies directed to the formalization of the workforce can provide an extra benefit, i.e. additional labour productivity gains in firms adopting the internet. Finally, policies oriented to the development of digital skills are also important to ease the re‐employment of those workers losing their jobs and the achievement of additional productivity gains that new organizational practices can provide.     

Social Protection for Retirees

Jobs are changing in ways that will reduce benefits for retirees. This paper explores the variety of pressures that will tend to produce this result. One major factor is that employers have been responding to cost pressures and the need for flexibility by redesigning jobs. There has been a trend-which is likely to continue-toward more part-time and temporary jobs, more subcontracting, and more contingent-pay systems. The consequences are complex and not all bad, but for retirees the tendency will be toward fewer, less generous, or less secure benefits. As workers approach retirement age facing the prospect of diminished benefits, increasing numbers of them will have to choose work to maintain their standard of living. At the same time, demographic pressures will gradually push employers to seek new pools of workers, including retirees. Gradually, employers are likely to provide fewer social-protection benefits to older people, but more employment opportunities.     

The need to import skilled personnel: factors favouring and hindering its international mobility

Skilled migration has become a major element of contemporary flows. It has developed in scale and variety since the 1930s and now takes many forms, including “brain drain”, professional transients, skilled permanent migrants and business transfers. Nevertheless, the data are poor, inconsistent and usually not differentiated by sex. The importance of policies, both national and regional, to control the movement of skilled migrants has escalated. Receiving countries have come increasingly to see the benefits from admitting skilled workers and have adjusted their permanent and/or temporary migration laws/policies to facilitate entry, usually on the proviso that it does not disadvantage their own workers by taking away their jobs. Another set of policy frameworks within which skilled migration is occurring is regional blocs. The experience of the European Union (EU) in promoting the flow of skilled labour, movement in this direction in the North American Free Trade Agreement (NAFTA), Mercosul, the Closer Economic Relations (CER) Agreement between Australia and New Zealand and the Asia Pacific Economic Cooperation (APEC) Forum are analysed. The article poses two sets of issues facing sending and receiving countries. For sending countries they are: whether to free up or tighten migration; whether to support temporary skilled flows; whether to introduce protective or preventive measures to stem skilled emigration; how to encourage the return of skilled nationals; and whether/how to pursue compensation from post-industrialized countries. For receiving countries they are: whether to encourage temporary or permanent skilled immigration; the level of entry to permit/promote; how to select/process skilled immigrants; whether/how to protect the jobs of locals; and how they ensure the successful labour market integration of skilled immigrants. The article argues that the neo-classical view that skilled migration leads to overall improvement in global development does not apply. “Brain waste” or “wasted skills” occur frequently, to the detriment of both individuals and nations. Improved data and constructive dialogue on skilled migration are needed. Within both regional and international contexts, countries have obligations and responsibilities towards each other which need to be taken seriously.     

Recent trends in job security and stability

In recent years, the popular press has led us to believe that downsizing and mergers are throwing unprecedented numbers of Americans out of secure jobs. In this paper, we survey current research that addresses these concerns, reconciling the sometimes disparate results of papers examining job tenure and separations, exploring the consequences of involuntary job loss, and reviewing research on trends in part-time, temporary, and contingent employment. There is no evidence of a dramatic change in job security over the last two decades. The various studies do not point to consistent losses in job security for any particular demographic group. Gina Franco, Noah Hochman, Charles Kaljian, Leah McKelvie and Christopher Thompson provided exceptional research assistance. The authors thank Robert Krol, Alec Levenson, and Elaine Reardon for their suggestions. Shirley V. Svorny is also an affiliated scholar at the Milken Institute.     

The impact of unions on job satisfaction,organizational commitment,and turnover

Conclusion The research on the exit-voice hypothesis, both in the United States and abroad, shows convincingly that most of the variance in the negative union effect on job satisfaction can be accounted for by job quality, industrial relation climate, and wages. Union members see their jobs as less attractive than do nonunion workers in terms of skill requirements, task complexity, the amount of autonomy or discretion available, and opportunities for promotion. Union members also perceive the supervision they receive and the labor-management relations they experience as less satisfactory. They are, however, clearly better off with respect to wages, benefits, and pensions. But when it comes to job satisfaction, the economic advantages of union jobs are not sufficient to compensate for job content and work environment factors. It comes as no surprise to the job satisfaction researcher that job content — the nature of the tasks people are given to do — weighs heavily in overall job satisfaction scores. While there are individual differences in the degree to which people prefer intrinsically interesting jobs, there is ample empirical evidence showing that autonomy, skill variety, complexity, challenge, and advancement are important determinants of people's affective reactions to their jobs (Deci, 1975; Hackman and Oldham, 1980; Kanfer, 1990). The relative importance of job content factors to overall job satisfaction is also mirrored in the most commonly used measures of job satisfaction (Weiss et al., 1967).     

Schedule flexibility in hourly jobs: unanticipated consequences and promising directions

This article considers the challenge of extending conventional models of flexibility to hourly jobs that are often structured quite differently than the salaried, professional positions for which flexibility options were originally designed. We argue that the assumptions of job rigidity and overwork motivating existing flexibility options may not be broadly applicable across jobs in the US labor market. We focus specifically on two types of flexibility: (1) working reduced hours and (2) varying work timing. We first review central aspects of the US business and policy contexts that inspire our concerns, and then draw on original analyses from US census data and several examples from our comparative case-study research to explain how conventional flexibility options do not always map well onto hourly jobs, and in certain instances may disadvantage workers by undermining their ability to earn an adequate living. We conclude with a discussion of alternative approaches to implementing flexibility in hourly jobs when hours are scarce and fluctuating rather than long and rigid.