The DOI matches its Crossref record; 17 of the 17 references it cites were found in a registry or an index.
“Does Outsourcing Reduce Wages in the Low-Wage Service Occupations? Evidence from Janitors and Guards”
Abstract
Outsourcing of labor services grew substantially during the 1980s and 1990s and was associated with lower wages, fewer benefits, and lower rates of unionization. The authors focus on two occupations for which they can identify outsourcing in those two decades using industry and occupation codes: janitors and guards. Across a wide array of specifications, they find that the outsourcing wage penalty ranged from 4% to 7% for janitors and from 8% to 24% for guards. Their findings on health benefits mirror those on wages. Evidence suggests that the outsourcing penalty was not due to compensating differentials for higher benefits or lower hours, skill differences, or the types of industries that outsourced. Rather, outsourcing seems to have reduced labor market rents for workers, especially for those in the upper half of the occupational wage distribution. Industries with higher historical wage premia were more likely to outsource service work.
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“It may also reduce the bargaining power of both in-house and outsourced workers in occupations subject to outsourcing threats and increased labor market competition (Dube and Kaplan, 2010; Goldschmidt and Schmieder, 2017).”
From The Fall of the Labor Share and the Rise of Superstar Firms* (2020) · cites this paper as Dube and Kaplan, 2010
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Metadata
- Authors
- Dube, A., & Kaplan, E.
- Affiliations
- Stockholm University (SE)
- Venue
- ILR Review
- Publisher
- SAGE Publications
- Published
- 2010-01
- Volume
- 63
- Issue
- 2
- Pages
- 287-306
- ISSN
- 0019-7939 (ISSN-L)
- 2162-271X
- OpenAlex
- W1479909922
- Cited by
- 203
- References
- 17
- Citations by year
- 2026: 11 · 2025: 11 · 2024: 17 · 2023: 23 · 2022: 10 · 2021: 21 · 2020: 23 · 2019: 13 · 2018: 15 · 2017: 10 · 2016: 13 · 2015: 9 · 2014: 6 · 2013: 8 · 2012: 4
- FWCI
- 13.60
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Industrial and Labor Relations Review (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Social Sciences › Business, Management and Accounting › Industrial relations › Employment, Labor, and Gender Studies
- Keywords
- labor outsourcing, wage penalty, cleaning workers, guards, health benefits, unionization, compensating differentials, service sector employment
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