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Employment Relationships in the New Economy

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  • David Neumark
  • Deborah Reed

Abstract

It is often argued that 'new economy' jobs are less likely to use traditional employment relationships, and more likely to rely on 'alternative' or 'contingent' work. When we look at new economy jobs classified on the basis of employment in high-tech industries, we do not find greater use of contingent or alternative employment relationships. However, when we classify new economy workers based on residence in high-tech cities, contingent and alternative employment relationships are more common, even after accounting for the faster employment growth in these cities. Finally, defining 'new economy' more literally to be those industries with the fastest growth yields the most striking differences, as workers in the fastest-growing industries are much more likely to be in contingent or alternative employment relationships, with a large share of this difference driven by employment in the fast-growing construction and personnel supply services industries where employment is perhaps 'intrinsically' contingent or alternative. While subject to numerous qualifications, the combined evidence gives some support to the hypothesis that the new economy may entail a possibly significant and long-lasting increase in contingent and alternative employment relationships.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8910.

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Date of creation: Apr 2002
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Publication status: published as Neumark, David & Reed, Deborah, 2004. "Employment relationships in the new economy," Labour Economics, Elsevier, vol. 11(1), pages 1-31, February.
Handle: RePEc:nbr:nberwo:8910

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Cited by:
  1. Chris Forde & Gary Slater, 2004. "Agency working in Britain: character, consequences and regulation," Working Papers 2004/4, Nottingham Trent University, Nottingham Business School, Economics Division.
  2. Richard B. Freeman, 2002. "The labour market in the new information economy," LSE Research Online Documents on Economics 20062, London School of Economics and Political Science, LSE Library.
  3. Judit KAPÃS & Pál CZEGLÉDI, 2007. "What Does Transition Mean?: Post-socialist and Western European Countries Paralleled," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 3, pages 3-28, December.
  4. repec:hal:wpaper:halshs-00646595 is not listed on IDEAS
  5. Philippe Azkenazy & Eva Moreno, 2004. "The impact of technological and organizational changes on labor flows. Evidence on French establishments," DELTA Working Papers 2004-25, DELTA (Ecole normale supérieure).
  6. Behaghel, Luc & Moschion, Julie, 2012. "Skilled Labor Supply, IT-Based Technical Change and Job Instability," IZA Discussion Papers 6839, Institute for the Study of Labor (IZA).
  7. Kapás, Judit & Czeglédi, Pál, 2008. "Technológiai és intézményi változások a munkapiacon és a vállalati szervezetben. Nyugat- és kelet-közép-európai összehasonlítás
    [Technological and institutional changes on the labour
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 308-332.
  8. Patrick Laplange & Maurice Glover & Tim Fry, 2005. "The Growth of Labour Hire Employment in Australia," Labor and Demography 0503001, EconWPA.
  9. Askenazy, Philippe & Moreno-Galbis, Eva, 2007. "Technological and Organizational Changes, and Labor Flows: Evidence on French Establishments," IZA Discussion Papers 2549, Institute for the Study of Labor (IZA).
  10. R. Aeberhardt & C. Marbot, 2013. "Evolution of Instability on the French Labour Market during the Last Thirty Years," Documents de Travail de la DESE - Working Papers of the DESE g2013-08, Institut National de la Statistique et des Etudes Economiques, DESE.
  11. repec:hal:wpaper:halshs-00567682 is not listed on IDEAS

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