Alternative and Part-Time Employment Arrangements as a Response to Job Loss

Abstract

I examine the extent to which workers who lose jobs find work in alternative employment arrangements including temporary work and independent contracting and find part-time work, both voluntary and involuntary.The analysis is based on data from the Displaced Worker Supplements (DWS) and the February 1994 and 1996 Current Population Surveys (CPS) which I match to the Contingent and Alternative Employment Arrangements Supplements (CAEAS) to the February CPSs in the subsequent years (1995 and 1997 respectively).I find that job losers are significantly more likely than non-losers to be in temporary jobs (including on-call work and contract work).I also find evidence that the likelihood of temporary employment falls with time since job loss.With regard to part-time employment, I find that involuntary part-time employment is an important part of the employment experience subsequent to job loss and that the likelihood of involuntary part-time employment falls with time since job loss, particularly for full-time job losers.Thus, it appears that temporary and involuntary part-time jobs are part of a transitional process subsequent to job loss leading to regular full-time employment.