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Alternative and Part-Time Employment Arrangements as a Response to Job Loss

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  • Henry S. Farber

Abstract

I examine the extent to which workers who lose jobs find work in alternative employment arrangements including temporary work and independent contracting and find part-time work, both voluntary and involuntary. The analysis is based on data from the Displaced Worker Supplements (DWS) and the February 1994 and 1996 Current Population Surveys (CPS) which I match to the Contingent and Alternative Employment Arrangements Supplements (CAEAS) to the February CPSs in the subsequent years (1995 and 1997 respectively). I find that job losers are significantly more likely than non-losers to be in temporary jobs (including on-call work and contract work). I also find evidence that the likelihood of temporary employment falls with time since job loss. With regard to part-time employment, I find that involuntary part-time employment is an important part of the employment experience subsequent to job loss and that the likelihood of involuntary part-time employment falls with time since job loss, particularly for full-time job losers. Thus that temporary and involuntary part-time jobs are part of a transitional process subsequent to job loss leading to regular full-time employment.

Suggested Citation

  • Henry S. Farber, 1999. "Alternative and Part-Time Employment Arrangements as a Response to Job Loss," NBER Working Papers 7002, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:7002
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    References listed on IDEAS

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    1. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
    2. Lewis M. Segal & Daniel G. Sullivan, 1997. "The Growth of Temporary Services Work," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 117-136, Spring.
    3. Topel, Robert, 1990. "Specific capital and unemployment: Measuring the costs and consequences of job loss," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 33(1), pages 181-214, January.
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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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