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The Evolution of the Demand for Temporary Help Supply Employment in the United States

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Author Info
Marcello M. Estevao
Saul Lach

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Abstract

The Bureau of Labor Statistics has reported an extraordinary increase in temporary help supply (THS) employment during the late 1980s and the 1990s. However, little is known about the venues where these THS employees actually work. Our estimates indicate that the proportion of THS employees in each major American industry, except the public sector, increased during 1977-97. By 1997, close to 4 percent of the employees in manufacturing and services were THS workers. In the service sector, the increase was accompanied by a large increase in direct hires. In manufacturing, however, it was accompanied by a decline in direct hiring from its peak in 1989 even though output increased substantially in the 1990s. Practically, all of the growth in THS employment is attributed to a change in the hiring behavior of firms, rather than to a disproportional increase in the size of more THS-intensive industries.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7427.

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Date of creation: Dec 1999
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Handle: RePEc:nbr:nberwo:7427

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Find related papers by JEL classification:
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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References listed on IDEAS
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.:
  1. Marcello Estevao & Saul Lach, 1999. "Measuring Temporary Labor Outsourcing in U.S. Manufacturing," NBER Working Papers 7421, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Segal, Lewis M & Sullivan, Daniel G, 1997. "The Growth of Temporary Services Work," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 117-36, Spring. [Downloadable!] (restricted)
  3. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July. [Downloadable!] (restricted)
    Other versions:
  4. Lewis M. Segal & Daniel G. Sullivan, 1995. "The temporary labor force," Economic Perspectives, Federal Reserve Bank of Chicago, issue Mar, pages 2-19.
  5. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1409-1448, November. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Mariagiovanna Baccaraa, 2004. "Outsourcing, Information Leakage and Consulting Firms," Working Papers 04-19, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
  2. Tommaso NANNICINI, 2004. "The Take-off of Temporary Employment in the Italian Labor Market," Economics Working Papers ECO2004/09, European University Institute. [Downloadable!]
  3. Tommaso Nannicini, 2004. "Temporary Workers: How Temporary Are They?," Economics Working Papers ECO2004/23, European University Institute. [Downloadable!]
  4. Daniel S. Hamermesh, 2000. "12 Million Salaried Workers Are Missing," NBER Working Papers 8016, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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