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Working Paper: Domestic Outsourcing in the United States: A Research Agenda to Assess Trends and Effects on Job Quality

Author

Listed:
  • Annette Bernhardt
  • Rosemary Batt
  • Susan Houseman
  • Eileen Appelbaum

Abstract

The goal of this paper is to develop a comprehensive research agenda to analyze trends in domestic outsourcing in the U.S. — firms’ use of contractors and independent contractors — and its effects on job quality and inequality. In the process, we review definitions of outsourcing, the available scant empirical research, and limitations of existing data sources. We also summarize theories that attempt to explain why firms contract out for certain functions and assess their predictions about likely impacts on job quality. We then lay out in detail a major research initiative on domestic outsourcing, discussing the questions it should answer and providing a menu of research methodologies and potential data sources. Such a research investment will be a critical resource for policymakers and other stakeholders as they seek solutions to problems arising from the changing nature of work.

Suggested Citation

  • Annette Bernhardt & Rosemary Batt & Susan Houseman & Eileen Appelbaum, 2016. "Working Paper: Domestic Outsourcing in the United States: A Research Agenda to Assess Trends and Effects on Job Quality," CEPR Reports and Issue Briefs 2016-03, Center for Economic and Policy Research (CEPR).
    • Handle: RePEc:epo:papers:2016-03
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    4. Alexandre Mas & Amanda Pallais, 2020. "Alternative Work Arrangements," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 631-658, August.
    5. Christine A. Riordan & Alexander M. Kowalski, 2021. "From Bread and Roses to #MeToo: Multiplicity, Distance, and the Changing Dynamics of Conflict in IR Theory," ILR Review, Cornell University, ILR School, vol. 74(3), pages 580-606, May.
    6. Delgado, Mercedes & Mills, Karen G., 2020. "The supply chain economy: A new industry categorization for understanding innovation in services," Research Policy, Elsevier, vol. 49(8).
    7. Eileen Appelbaum, 2017. "Domestic Outsourcing, Rent Seeking, and Increasing Inequality," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(4), pages 513-528, December.
    8. John Schmitt, 2017. "Comments on “Domestic Outsourcing, Rent Seeking, and Increasing Inequality†by Eileen Appelbaum," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(4), pages 529-533, December.
    9. Virginia Doellgast & Matthew Bidwell & Alexander J. S. Colvin, 2021. "New Directions in Employment Relations Theory: Understanding Fragmentation, Identity, and Legitimacy," ILR Review, Cornell University, ILR School, vol. 74(3), pages 555-579, May.

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    More about this item

    JEL classification:

    • L - Industrial Organization
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • J - Labor and Demographic Economics
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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