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‘Atypical Work’ and Compensation

Author

Listed:
  • John T. Addison

    (University of South Carolina (U.S.A.), GEMF/Universidade de Coimbra (Portugal) and IZA (Germany))

  • Christopher J. Surfield

    (Department of Business Administration, Lander University)

Abstract

Atypical work, or alternative work arrangements in U.S. parlance, has long been criticized in popular debate as providing poorly-compensated employment. Although the early U.S. literature seemed to confirm this perception, more recent cet. par. analysis has offered a partial but somewhat more optimistic evaluation. The present paper builds on the latter body of research with a view to providing improved estimates of the effect of the full range alternative work arrangements on worker compensation. The improvements are basically two-fold. First, we account for the skewness in atypical worker earnings while retaining the Mincerian human capital earnings function. Second, we deploy additional waves of the main dataset on atypical workers (the CAEAS), while supplementing this cross-section analysis with longitudinal data from the NLSY. Our analysis covers earnings and (access to) health benefits. We report that although one group of atypical workers (contractors) seems to enjoy a wage premium, cross-section results from the CPS and NLSY for the better-known category of temporary workers point to a negative wage differential of some 6-15 percent. It emerges that much of the disparity stems from unobserved worker heterogeneity, accounting for which still supports a wage advantage for contracting work. As far as fringes are concerned, the appearance in cross section of a potentially large deficit in access to health benefits is again reduced after accounting for the permanent unobserved individual heterogeneity, although in this case the attenuation is much more modest.

Suggested Citation

  • John T. Addison & Christopher J. Surfield, 2005. "‘Atypical Work’ and Compensation," GEMF Working Papers 2005-14, GEMF, Faculty of Economics, University of Coimbra.
  • Handle: RePEc:gmf:wpaper:2005-14
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    References listed on IDEAS

    as
    1. John T. Addison & Christopher J. Surfield, 2006. "The Use of Alternative Work Arrangements by the Jobless: Evidence from the CAEAS/CPS," Journal of Labor Research, Transaction Publishers, vol. 27(2), pages 149-162, April.
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    Cited by:

    1. Blandina Oliveira & Adelino Fortunato, 2008. "The dynamics of the growth of firms: evidence from the services sector," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(3), pages 293-312, July.
    2. Marloes de Graaf-Zijl, 2005. "The Attractiveness of Temporary Employment to Reduce Adjustment Costs," Tinbergen Institute Discussion Papers 05-121/3, Tinbergen Institute.
    3. Adelino Fortunato & Daniel Murta, 2005. "Horizontal Differentiation and the survival of Train and Coach modes in medium range passenger transport, a welfare analysis comprising economies of scope and scale," GEMF Working Papers 2005-15, GEMF, Faculty of Economics, University of Coimbra.
    4. Tatiana Karabchuk, 2012. "Part-time and temporary workers in Russia: winners or losers? [Teilzeitbeschäftigte und befristet Beschäftigte in Russland: Gewinner oder Verlierer?]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 23-39, March.
    5. Marloes de Graaf-Zijl, 2005. "The Anatomy of Job Satisfaction and the Role of Contingent Employment Contracts," Tinbergen Institute Discussion Papers 05-119/3, Tinbergen Institute.
    6. Marloes de Graaf-Zijl, 2005. "Compensation of On-call and Fixed-term Employment: the Role of Uncertainty," Tinbergen Institute Discussion Papers 05-120/3, Tinbergen Institute.
    7. Dorothea Alewell & Katrin Baehring & Anne Canis & Sven Hauff & Kirsten Thommes, 2007. "Outsourcing HR Functions. Development of an Explanatory Approach to Firms' (Non-Existent) Demand for Personnel Services," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(3), pages 271-292.

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    More about this item

    Keywords

    atypical/contingent work; alternative work arrangements; wage differentials; employer-related health insurance;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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