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Title: Domestic Outsourcing in the United States
Citation Type: Miscellaneous
Publication Year: 2018
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Abstract: The nature of the employer-employee relationship is drastically changing in the United States, with lead employers employing fewer workers directly and instead relying on intermediaries and contracting firms for providing labor services. In this paper we investigate the incidence and effects of outsourcing labor service jobs in food, cleaning, security and logistics (FCSL) to business service firms. We first provide long time series using Census and ACS data documenting large movements of FCSL jobs to business service firms, with an accelerating trend since the Great Recession. We then analyze how the outsourcing of jobs affects wages at those jobs by identifying on-site outsourcing events in the Longitudinal Employer-Household Dynamics (LEHD) dataset which allows us to compare the same worker before and after he is outsourced to a business service firm. Preliminary results suggest long-run earnings losses of about 5% for the outsourced workers and higher job-to-job mobility.
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Authors: Dorn, David; Schmieder, Johannes F.; Spletzer, James R.
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Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure
Countries: United States