Do Peripheral Workers Do Peripheral Work? Comparing the Use of Highly Skilled Contractors and Regular Employees

Posted: 14 May 2011

See all articles by Matthew J. Bidwell

Matthew J. Bidwell

University of Pennsylvania - Management Department

Date Written: January 1, 2009

Abstract

This paper uses data from a 2002 survey of project managers in a large, U.S.-based financial services institution to compare how contractors and regular employees were assigned to work within an information technology department. The author uses these data to test standard core-periphery arguments about the use of contingent workers, as well as accounts of contingent work that emphasize the interests of frontline managers. He finds that contractors and employees were used very similarly in most respects, although there were some differences. Contractors were less likely to be used in roles that were more critical to the firm, but more likely to be used when frontline managers’ interests could conflict with the organization’s. Contractors were also less likely to be given positions requiring knowledge of the business. No evidence is found, however, that other kinds of firm-specific skills affected how contractors were used.

Keywords: Contingent work, Independent contractors, Internal Labor Markets, Information Technology Workers

JEL Classification: M51, M12

Suggested Citation

Bidwell, Matthew J., Do Peripheral Workers Do Peripheral Work? Comparing the Use of Highly Skilled Contractors and Regular Employees (January 1, 2009). Industrial and Labor Relations Review, Vol. 62, No. 2, 2009, Available at SSRN: https://ssrn.com/abstract=1839712

Matthew J. Bidwell (Contact Author)

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States

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