Manufacturing Plants' Use of Temporary Workers: An Analysis Using Census Microdata
AbstractUsing plant-level data from the Plant Capacity Utilization (PCU) Survey, we examine how a manufacturing plantâs use of temporary workers is associated with the nature of its output fluctuations. Our empirical evidence suggests that plants choose temps over perms when they expect output to fall, which allows them to avoid costs associated with laying off permanent employees. We also found that plants whose output levels are associated with greater levels of uncertainty use more temps. The effects of other variables are also tested in order to examine the validity of various views about why firms use temporary workers. The variables we look at include wage and benefit levels for permanent workers, unionization rates, turnover rates, seasonal factors, and plant size and age.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Industrial Relations: A Journal of Economy and Society.
Volume (Year): 52 (2013)
Issue (Month): 2 (04)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0019-8676
Other versions of this item:
- Yukako Ono & Daniel G. Sullivan, 2006. "Manufacturing plants’ use of temporary workers: an analysis using census micro data," Working Paper Series WP-06-24, Federal Reserve Bank of Chicago.
- Yukako Ono & Daniel Sullivan, 2008. "Manufacturing Plants' Use of Temporary Workers: An Analysis Using Census Micro Data," Working Papers 08-40, Center for Economic Studies, U.S. Census Bureau.
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
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