Manufacturing plants’ use of temporary workers: an analysis using census micro data
AbstractUsing plant-level data from the Plant Capacity Utilization (PCU) Survey, we examine how a manufacturing plant’s 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of Chicago in its series Working Paper Series with number WP-06-24.
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: P.O. Box 834, 230 South LaSalle Street, Chicago, Illinois 60690-0834
Web page: http://www.chicagofed.org/
More information through EDIRC
Other versions of this item:
- Yukako Ono & Daniel Sullivan, 2013. "Manufacturing Plants' Use of Temporary Workers: An Analysis Using Census Microdata," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(2), pages 419-443, 04.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-02 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lewis Segal & Daniel Sullivan, 1996.
"The growth of temporary services work,"
Working Paper Series, Macroeconomic Issues
WP-96-26, Federal Reserve Bank of Chicago.
- Susan N. Houseman, 2000.
"Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey,"
Upjohn Working Papers and Journal Articles
01-67, W.E. Upjohn Institute for Employment Research.
- Susan N. Houseman, 2001. "Why employers use flexible staffing arrangements: Evidence from an establishment survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
- Susan N. Houseman & Arne L. Kalleberg & George A. Erickcek, 2001. "The Role of Temporary Help Employment in Tight Labor Markets," Upjohn Working Papers and Journal Articles 01-73, W.E. Upjohn Institute for Employment Research.
- Lewis M. Segal & Daniel G. Sullivan, 1995. "The temporary labor force," Economic Perspectives, Federal Reserve Bank of Chicago, issue Mar, pages 2-19.
- Lawrence Katz & Alan Krueger, 1999.
"The High-pressure U.S. Labor Market of the 1990s,"
795, Princeton University, Department of Economics, Industrial Relations Section..
- Susan N. Houseman, . "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," Upjohn Working Papers and Journal Articles snh2001, W.E. Upjohn Institute for Employment Research.
- Daniel Aaronson & Ellen Rissman & Daniel G. Sullivan, 2004. "Can sectoral reallocation explain the jobless recovery?," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 36-39.
- Marcello Estevao & Saul Lach, 1999.
"Measuring temporary labor outsourcing in U.S. manufacturing,"
Finance and Economics Discussion Series
1999-57, Board of Governors of the Federal Reserve System (U.S.).
- Marcello Estevao & Saul Lach, 1999. "Measuring Temporary Labor Outsourcing in U.S. Manufacturing," NBER Working Papers 7421, National Bureau of Economic Research, Inc.
- Lewis M. Segal & Daniel G. Sullivan, 1998. "Wage differentials for temporary services work: evidence from administrative data," Working Paper Series WP-98-23, Federal Reserve Bank of Chicago.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Christopher L. House & Jing Zhang, 2012. "Layoffs, Lemons and Temps," NBER Working Papers 17962, National Bureau of Economic Research, Inc.
- Matthew Dey & Susan Houseman & Anne Polivka, 2009.
"What Do We Know about Contracting Out in the United States? Evidence from Household and Establishment Surveys,"
Upjohn Working Papers and Journal Articles
09-157, W.E. Upjohn Institute for Employment Research.
- Matthew Dey & Susan Houseman & Anne Polivka, 2010. "What Do We Know About Contracting Out in the United States? Evidence from Household and Establishment Surveys," NBER Chapters, in: Labor in the New Economy, pages 267-304 National Bureau of Economic Research, Inc.
- ASANO Hirokatsu & ITO Takahiro & KAWAGUCHI Daiji, 2011.
"Why Has the Fraction of Contingent Workers Increased? A case study of Japan,"
11021, Research Institute of Economy, Trade and Industry (RIETI).
- Hirokatsu Asano & Takahiro Ito & Daiji Kawaguchi, 2011. "Why Has the Fraction of Contingent Workers Increased? A Case Study of Japan," IDEC DP2 Series 1-3, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
- Britton Lombardi & Yukako Ono, 2008.
"Professional employer organizations: What are they, who uses them, and why should we care?,"
Federal Reserve Bank of Chicago, issue Q IV, pages 2-14.
- Britton Lombardi & Yukako Ono, 2010. "Professional Employer Organizations: What Are They, Who Uses Them and Why Should We Care?," Working Papers 10-22, Center for Economic Studies, U.S. Census Bureau.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bernie Flores).
If references are entirely missing, you can add them using this form.