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‘Atypical Work’ and Compensation

Author

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  • Addison, John T.

    () (University of South Carolina)

  • Surfield, Christopher J.

    () (Saginaw Valley State University)

Abstract

Atypical work, or alternative work arrangements in U.S. parlance, has long been criticized for providing poorly-compensated employment. Although one group of atypical workers (contractors) seems to enjoy a wage premium, our cross-section results from the CPS and NLSY for the better-known category of temporary workers point to a negative wage differential of some 7-12 percent. It emerges that much of the latter disparity stems from unobserved worker heterogeneity (accounting for which supports a wage advantage for contracting work). Turning to fringes, the appearance in cross section of a potentially large deficit in atypical worker health benefits is again reduced after accounting for permanent unobserved individual heterogeneity. But on this occasion the reduction is very modest. Further, there is now some indication that the wage advantage of contract workers partly compensates for their reduced access to such benefits.

Suggested Citation

  • Addison, John T. & Surfield, Christopher J., 2005. "‘Atypical Work’ and Compensation," IZA Discussion Papers 1477, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1477
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    Cited by:

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    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Marloes de Graaf-Zijl, 2005. "The Attractiveness of Temporary Employment to Reduce Adjustment Costs," Tinbergen Institute Discussion Papers 05-121/3, Tinbergen Institute.
    7. 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.

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    More about this item

    Keywords

    alternative work arrangements; atypical/contingent work; employer-related health insurance; wage differentials;
    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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