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Firms' Use of Outside Contractors: Theory and Evidence
Abstract
A firm's decision to contract out for business support services may be influenced by the wage and benefit savings it could realize, the volatility of its output demand, and the availability of specialized skills possessed by the outside contractor. Analysis of newly available establishment-level data shows that all three of these factors help to explain observed contracting behavior. The reported empirical findings are relevant both for understanding the recent growth in business support service contracting and for understanding firms' relationships with their own employees.
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Citations
Cited by
Nonstandard Employment Relations: Part-time, Temporary and Contract Work
Kalleberg, A. L. (2000) · Annual Review of Sociology · doi:10.1146/annurev.soc.26.1.341 · Cited by 1,595
Autor, D. H. (2003) · Journal of Labor Economics · doi:10.1086/344122 · Cited by 1,534
Lepak, D. P., & Snell, S. A. (2002) · Journal of Management · doi:10.1016/s0149-2063(02)00142-3 · Cited by 1,365
Antràs, P., & Helpman, E. (2004) · Journal of Political Economy · doi:10.1086/383099 · Cited by 1,158
Temporary Jobs: Stepping Stones or Dead Ends?
Booth, A. L., Francesconi, M., & Frank, J. (2002) · The Economic Journal · doi:10.1111/1468-0297.00043 · Cited by 1,114
Metadata
- Authors
- Abraham, K. G., & Taylor, S. K.
- Venue
- Journal of Labor Economics
- Publisher
- University of Chicago Press
- Published
- 1996-07
- Volume
- 14
- Issue
- 3
- Pages
- 394-424
- ISSN
- 0734-306X (ISSN-L)
- 1537-5307
- OpenAlex
- W2032773281
- Cited by
- 554
- References
- 0
- FWCI
- 39.37
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: Firms' Use of Outside Contractors: Theory and Evidence. https://app.cochat.ai/papers/10.1086/209816
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- Abraham, K. G., & Taylor, S. K. (1996). Firms' Use of Outside Contractors: Theory and Evidence. Journal of Labor Economics. https://doi.org/10.1086/209816
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
