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The Use of Flexible Staffing Arrangements in Core Production Jobs

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  • Cynthia L. Gramm
  • John F. Schnell

Abstract

Using data from their own 1994–96 survey of human resource managers in Alabama establishments, the authors investigate what determines the use of flexible staffing arrangements in core jobs and how such arrangements affect the job security provided to regular core employees. They find that union representation deterred in-house flexible arrangements, but not subcontracting; the likelihood of subcontracting was positively related to core employees' wages, relative to wages of other similar workers in the industry; and the use of flexible staffing arrangements was positively associated with two factors: core employee hiring costs, and a business strategy emphasizing low-cost production (versus, for example, market specialization). They also find evidence that regular core employees gained enhanced employment stability through their employer's use of flexible staffing arrangements to vary labor inputs in core jobs.

Suggested Citation

  • Cynthia L. Gramm & John F. Schnell, 2001. "The Use of Flexible Staffing Arrangements in Core Production Jobs," ILR Review, Cornell University, ILR School, vol. 54(2), pages 245-258, January.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:2:p:245-258
    DOI: 10.1177/001979390105400203
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    References listed on IDEAS

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    1. Katharine G. Abraham, 1988. "Flexible Staffing Arrangements and Employers' Short-Term Adjustment Strategies," NBER Working Papers 2617, National Bureau of Economic Research, Inc.
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    Cited by:

    1. John S. Heywood & W.S. Siebert & Xiangdong Wei, 2011. "Estimating the Use of Agency Workers: Can Family-Friendly Practices Reduce Their Use?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 535-564, July.
    2. Colin P. Green & John S. Heywood, 2011. "Flexible Contracts And Subjective Well‐Being," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 716-729, July.
    3. Peter H. Cappelli & JR Keller, 2013. "A Study of the Extent and Potential Causes of Alternative Employment Arrangements," ILR Review, Cornell University, ILR School, vol. 66(4), pages 874-901, July.
    4. Hakenes, Hendrik & Katolnik, Svetlana, 2017. "On the incentive effects of job rotation," European Economic Review, Elsevier, vol. 98(C), pages 424-441.
    5. Smirnykh, Larisa & Wörgötter, Andreas, 2019. "The importance of institutional and organizational characteristics for the use of fixed-term contracts in Russia," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(1), pages 89-121.
    6. Francesco Devicienti & Paolo Naticchioni & Andrea Ricci, 2015. "How Do Demand Volatility And Unions Affect Temporary Employment? A Firm-Level Approach," Working Papers 0415, CREI Università degli Studi Roma Tre, revised 2015.
    7. Francesco Devicienti & Paolo Naticchioni & Andrea Ricci, 2018. "Temporary Employment, Demand Volatility, and Unions: Firm-Level Evidence," ILR Review, Cornell University, ILR School, vol. 71(1), pages 174-207, January.
    8. Peter Cappelli & J. R. Keller, 2012. "A Study of the Extent and Potential Causes of Alternative Employment Arrangements," NBER Working Papers 18376, National Bureau of Economic Research, Inc.
    9. René Böheim & Martina Zweimüller, 2013. "The Employment of Temporary Agency Workers in the UK : For or Against the Trade Unions?," Economica, London School of Economics and Political Science, vol. 80(317), pages 65-95, January.
    10. Addison, John T. & Teixeira, Paulino & Grunau, Philipp & Bellmann, Lutz, 2018. "Worker Representation and Temporary Employment in Germany: The Deployment and Extent of Fixed-Term Contracts and Temporary Agency Work," IZA Discussion Papers 11378, Institute of Labor Economics (IZA).
    11. Byoung-Hoon LEE & Dong-Bab KIM & Joonmq CHO, 2005. "Union Effect On The Use Of Non-Regular Labor In The Republic Of Korea," The Developing Economies, Institute of Developing Economies, vol. 43(4), pages 425-449, December.
    12. A. Arrighetti & L. Cattani & F. Landini & A. Lasagni, 2019. "Work Flexibility and Firm Growth," Economics Department Working Papers 2019-EP04, Department of Economics, Parma University (Italy).
    13. Andrea Garnero, 2021. "The impact of collective bargaining on employment and wage inequality: Evidence from a new taxonomy of bargaining systems," European Journal of Industrial Relations, , vol. 27(2), pages 185-202, June.
    14. John A. Holmes & Traci L. Mach, 2008. "The use of alternative employment arrangements by small businesses: evidence from the 2003 Survey of Small Business Finances," Finance and Economics Discussion Series 2008-45, Board of Governors of the Federal Reserve System (U.S.).
    15. Pedro Portugal & José Varejão, 2022. "Why do firms use fixed-term contracts?," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(3), pages 401-421, September.
    16. Holger Görg & Dennis Görlich, 2015. "Offshoring, wages and job security of temporary workers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(3), pages 533-554, August.
    17. Beckmann, Michael & Kuhn, Dieter, 2010. "Complementarities between workplace organisation and human resource management : evidence from Swiss firm-level panel data," Working papers 2010/03, Faculty of Business and Economics - University of Basel.
    18. Simon C. Parker, 2010. "Contracting Out, Public Policy And Entrepreneurship," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(2), pages 119-144, May.
    19. Janet Chew & Antonia Girardi, 2008. "Is Career Management the Panacea to Retaining Vital Staff?," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 1(1), pages 83-98.
    20. Jerome P. Reiter & Elaine L. Zanutto & Larry W. Hunter, 2005. "Analytical Modeling in Complex Surveys of Work Practices," ILR Review, Cornell University, ILR School, vol. 59(1), pages 82-100, October.

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