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What Do We Know about Contracting Out in the United States? Evidence from Household and Establishment Surveys

Author

Listed:
  • Matthew Dey

    (Bureau of Labor Statistics)

  • Susan Houseman

    (W.E. Upjohn Institute for Employment Research)

  • Anne Polivka

    (Bureau of Labor Statistics)

Abstract
A variety of evidence points to significant growth in domestic contracting out over the last two decades, yet the phenomenon is not well documented. In this paper, we pull together data from various sources to shed light on the extent of and trends in domestic outsourcing, the occupations in which it has grown, and the industries engaging in outsourcing for the employment services sector, which has been a particularly important area of domestic outsourcing. In addition, we examine evidence of contracting out of selected occupations to other sectors. We point to many gaps in our knowledge on trends in domestic outsourcing and its implications for employment patterns and to inconsistencies across data sets in the information that is available. We recommend steps to improve data in this area.

Suggested Citation

  • Matthew Dey & Susan Houseman & Anne Polivka, 2009. "What Do We Know about Contracting Out in the United States? Evidence from Household and Establishment Surveys," Upjohn Working Papers 09-157, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:09-157
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    as
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    Cited by:

    1. John C. Haltiwanger & James R. Spletzer, 2020. "Between Firm Changes in Earnings Inequality: The Dominant Role of Industry Effects," NBER Working Papers 26786, National Bureau of Economic Research, Inc.
    2. Haltiwanger, John C. & Hyatt, Henry R. & Spletzer, James R., 2022. "Industries, Mega Firms, and Increasing Inequality," IZA Discussion Papers 15197, Institute of Labor Economics (IZA).
    3. Deborah Goldschmidt & Johannes F. Schmieder, 2017. "The Rise of Domestic Outsourcing and the Evolution of the German Wage Structure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(3), pages 1165-1217.
    4. James Spletzer & Elizabeth Weber Handwerker, 2015. "The Role of Establishments and the Concentration of Occupations in Wage Inequality," Working Papers id:7427, eSocialSciences.
    5. Alexandre Mas & Amanda Pallais, 2020. "Alternative Work Arrangements," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 631-658, August.
    6. Paul Osterman, 2022. "How American Adults Obtain Work Skills: Results of a New National Survey," ILR Review, Cornell University, ILR School, vol. 75(3), pages 578-607, May.
    7. 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.
    8. Henry Hyatt & James Spletzer, 2013. "The recent decline in employment dynamics," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    9. Zimmerman, Paul R., 2010. "Deterrence from self-protection measures in the ‘market model’ of crime: dynamic panel data estimates from employment in private security occupations," MPRA Paper 26187, University Library of Munich, Germany.
    10. 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.
    11. Hammerling, Jessie HF, 2022. "Trends in Inter-Firm Transactions Across Industries in the U.S," Institute for Research on Labor and Employment, Working Paper Series qt9dr868wx, Institute of Industrial Relations, UC Berkeley.
    12. Annette Bernhardt & Michael W. Spiller & Nik Theodore, 2013. "Employers Gone Rogue: Explaining Industry Variation in Violations of Workplace Laws," ILR Review, Cornell University, ILR School, vol. 66(4), pages 808-832, July.
    13. Bernhardt, Annette, 2014. "Labor Standards and the Reorganization of Work: Gaps in Data and Research," Institute for Research on Labor and Employment, Working Paper Series qt3hc6t3d5, Institute of Industrial Relations, UC Berkeley.
    14. 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).
    15. N/A, 2013. "Introduction to the Special Issue on Job Quality: What Does it Mean and How Might We Think about It?," ILR Review, Cornell University, ILR School, vol. 66(4), pages 739-752, July.
    16. Zimmerman, Paul R., 2014. "The deterrence of crime through private security efforts: Theory and evidence," International Review of Law and Economics, Elsevier, vol. 37(C), pages 66-75.

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    More about this item

    Keywords

    contracting out; outsourcing; employment services; houseman;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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