IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v74y2021i3p715-738.html
   My bibliography  Save this article

How Do Employers Choose between Types of Contingent Work? Costs, Control, and Institutional Toying

Author

Listed:
  • Chiara Benassi
  • Andreas Kornelakis

Abstract

The increasing variety of contingent work raises the question of how employers choose between various types of contractual arrangements. The authors review relevant Employment Relations and Strategic HRM literature and distinguish four types of contingent contracts along the dimensions of costs and control. They argue that employers are making choices based on cost and control constraints but are able to reshape these constraints through “institutional toying.†Their case study of a German manufacturing plant and R&D center illustrates the mechanisms of institutional toying, which are consistent with the literature on institutional loopholes and exit options. The article develops propositions that explain the diversity of contingent work arrangements and show how toying strategies enlarge the range of options available to employers.

Suggested Citation

  • Chiara Benassi & Andreas Kornelakis, 2021. "How Do Employers Choose between Types of Contingent Work? Costs, Control, and Institutional Toying," ILR Review, Cornell University, ILR School, vol. 74(3), pages 715-738, May.
  • Handle: RePEc:sae:ilrrev:v:74:y:2021:i:3:p:715-738
    DOI: 10.1177/0019793920944910
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0019793920944910
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0019793920944910?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Damian Grimshaw & Jo Cartwright & Arjan Keizer & Jill Rubery, 2019. "Market Exposure and the Labour Process: The Contradictory Dynamics in Managing Subcontracted Services Work," Work, Employment & Society, British Sociological Association, vol. 33(1), pages 76-95, February.
    2. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2011. "Are temporary jobs a port of entry into permanent employment?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(8), pages 879-899, November.
    3. Nesheim, Torstein, 2003. "Using External Work Arrangements in Core Value-creation Areas," European Management Journal, Elsevier, vol. 21(4), pages 528-537, August.
    4. Susan Houseman & Machiko Osawa (ed.), 2003. "Nonstandard Work in Developed Economies: Causes and Consequences," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number nwde, November.
    5. Guell, Maia & Petrongolo, Barbara, 2007. "How binding are legal limits? Transitions from temporary to permanent work in Spain," Labour Economics, Elsevier, vol. 14(2), pages 153-183, April.
    6. Estelle Dhont-Peltrault & Etienne Pfister, 2011. "R&D cooperation versus R&D subcontracting: empirical evidence from French survey data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(4), pages 309-341.
    7. Jay R. Galbraith, 1974. "Organization Design: An Information Processing View," Interfaces, INFORMS, vol. 4(3), pages 28-36, May.
    8. Richard Hyman, 1994. "Theory and Industrial Relations," British Journal of Industrial Relations, London School of Economics, vol. 32(2), pages 165-180, June.
    9. Andreas Kornelakis, 2014. "Liberalization, flexibility and industrial relations institutions: evidence from Italian and Greek banking," Work, Employment & Society, British Sociological Association, vol. 28(1), pages 40-57, February.
    10. Thomas Prosser, 2016. "Dualization or liberalization? Investigating precarious work in eight European countries," Work, Employment & Society, British Sociological Association, vol. 30(6), pages 949-965, December.
    11. Jennifer Whyte & Sunila Lobo, 2010. "Coordination and control in project-based work: digital objects and infrastructures for delivery," Construction Management and Economics, Taylor & Francis Journals, vol. 28(6), pages 557-567.
    12. George, Elizabeth. & Chattopadhyay, Prithviraj., 2015. "Non-standard work and workers : organizational implications," ILO Working Papers 994883083402676, International Labour Organization.
    13. Jérôme Gautié & Schmitt John, 2010. "Low-Wage Work in the Wealthy World," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00464352, HAL.
    14. Paul Osterman, 1975. "An Empirical Study of Labor Market Segmentation," ILR Review, Cornell University, ILR School, vol. 28(4), pages 508-523, July.
    15. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    16. Paul Edwards & Jacques Bélanger & Martyn Wright, 2006. "The Bases of Compromise in the Workplace: A Theoretical Framework," British Journal of Industrial Relations, London School of Economics, vol. 44(1), pages 125-145, March.
    17. Ines Wagner, 2015. "Rule Enactment in a Pan-European Labour Market: Transnational Posted Work in the German Construction Sector," British Journal of Industrial Relations, London School of Economics, vol. 53(4), pages 692-710, December.
    18. Gerhard Bosch & Ken Mayhew & Jérôme Gautié, 2010. "Industrial relations, legal regulations, and wage setting," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00464362, HAL.
    19. Saravanan Kesavan & Bradley R. Staats & Wendell Gilland, 2014. "Volume Flexibility in Services: The Costs and Benefits of Flexible Labor Resources," Management Science, INFORMS, vol. 60(8), pages 1884-1906, August.
    20. Alex Bryson & Erling Barth & Harald Dale-Olsen, 2013. "The Effects of Organizational Change on Worker Well-Being and the Moderating Role of Trade Unions," ILR Review, Cornell University, ILR School, vol. 66(4), pages 989-1011, July.
    21. Hertwig, Markus & Kirsch, Johannes & Wirth, Carsten, 2015. "Onsite-Werkverträge: Verbreitung und Praktiken im Verarbeitenden Gewerbe," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(6), pages 457-465.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Dongwoo Park, 2023. "Lopsided inclusion: The impact of multi‐employer bargaining and class‐based unionism on non‐regular employment in South Korea," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 110-132, March.
    3. Maxime Bellego & Virginia Doellgast & Elisa Pannini, 2023. "From Taylorism to teams: organisational and institutional experimentation at France Télécom," Transfer: European Review of Labour and Research, , vol. 29(3), pages 355-370, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mussida Chiara & Sciulli Dario, 2015. "Flexibility Policies and Re-employment Probabilities in Italy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 621-651, April.
    2. 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).
    3. Bruno Contini & Roberto Quaranta, 2019. "Is Long-Term Non-employment a Lifetime Disease?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(1), pages 79-102, March.
    4. Bernhardt, Annette & Batt, Rosemary & Houseman, Susan & Appelbaum, Eileen, 2016. "Domestic Outsourcing in the U.S.: A Research Agenda to Assess Trends and Effects on Job Quality," Institute for Research on Labor and Employment, Working Paper Series qt2fm4m444, Institute of Industrial Relations, UC Berkeley.
    5. Pauline Givord & Lionel Wilner, 2015. "When Does the Stepping‐Stone Work? Fixed‐Term Contracts Versus Temporary Agency Work in Changing Economic Conditions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 30(5), pages 787-805, August.
    6. Giovanni S.F. Bruno & Floro E. Caroleo & Orietta Dessy, 2013. "Stepping stones versus dead end jobs: exits from temporary contracts in Italy after the 2003 reform," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 121(1), pages 31-62.
    7. Annette Bernhardt & Rosemary L. Batt & Susan Houseman & Eileen Appelbaum, 2016. "Domestic Outsourcing in the United States: A Research Agenda to Assess Trends and Effects on Job Quality," Upjohn Working Papers 16-253, W.E. Upjohn Institute for Employment Research.
    8. Luv Sharma & Aravind Chandrasekaran & Elliot Bendoly, 2020. "Does the Office of Patient Experience Matter in Improving Delivery of Care?," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 833-855, April.
    9. Berton, Fabio & Migheli Matteo, 2015. "Estimating the marginal rate of substitution between wage and employment protection," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201529, University of Turin.
    10. Gabriella BERLOFFA & Eleonora MATTEAZZI & Alina ŞANDOR & Paola VILLA, 2016. "Youth employment security and labour market institutions: A dynamic perspective," International Labour Review, International Labour Organization, vol. 155(4), pages 651-678, December.
    11. Bachmann, Ronald & Beimann, Boris & Bredtmann, Julia & David, Peggy & Ehlert, Christoph & Kassenböhmer, Sonja & Schaffner, Sandra & Siemers, Lars, 2011. "Studies on flexicurity Lot 1: Study on various aspects of labour market performance using micro data from the European Union statistics on income and living conditions (EU-SILC). Contract No. VC/2010/," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72620, March.
    12. Arthur Corazza, 2020. "Power, interest and insecurity: A comparative analysis of workplace dualization and inclusion in Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series 153, European Institute, LSE.
    13. Contini, Bruno & Quaranta, Roberto, 2017. "Explaining Non-Employment Magnitude and Duration: The Case of Italy," IZA Discussion Papers 10728, Institute of Labor Economics (IZA).
    14. Rocio Bonet & Marta Elvira & Stefano Visintin, 2024. "Hiring Temps but Losing Perms? Temporary Worker Inflows and Voluntary Turnover of Permanent Employees," Work, Employment & Society, British Sociological Association, vol. 38(1), pages 83-102, February.
    15. Chiara Mussida & Luca Zanin, 2020. "I found a better job opportunity! Voluntary job mobility of employees and temporary contracts before and after the great recession in France, Italy and Spain," Empirical Economics, Springer, vol. 59(1), pages 47-98, July.
    16. Chiara Mussida & Dario Sciulli, 2016. "The trend over time of labour market opportunities for young people in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 291-321, August.
    17. McVicar, Duncan & Wooden, Mark & Fok, Yin King, 2017. "Contingent Employment and Labour Market Pathways: Bridge or Trap?," IZA Discussion Papers 10768, Institute of Labor Economics (IZA).
    18. Albanese, Andrea & Gallo, Giovanni, 2020. "Buy flexible, pay more: The role of temporary contracts on wage inequality," Labour Economics, Elsevier, vol. 64(C).
    19. Ruth Rama & Adelheid Holl, 2013. "Subcontracting relationships," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 28, Edward Elgar Publishing.
    20. Mussida Chiara & Zanin Luca, 2019. "Voluntary Mobility of Employees for Better Job Opportunities Given a Temporary Contract: Insights Regarding an Age-Varying Association Between the Two Events," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-27, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:74:y:2021:i:3:p:715-738. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.