Firms&Apos; Use of Outside Contractors: Theory and Evidence

42 Pages Posted: 23 May 2001 Last revised: 18 Sep 2021

See all articles by Katharine G. Abraham

Katharine G. Abraham

University of Maryland - Joint Program in Survey Methodology and Department of Economics; National Bureau of Economic Research (NBER)

Susan K. Taylor

University of Maryland; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: September 1993

Abstract

A firm's decision to contract out for business support services may be influenced by the wage and benefit savings it could realize, the volatility of its output demand and the availability of specialized skills possessed by the outside contractor. Analysis of newly-available establishment-level data shows that all three of these factors help to explain observed contracting behavior. The reported empirical findings are relevant both for understanding the recent growth in business support service contracting and for understanding firms' relationships with their own employees.

Suggested Citation

Abraham, Katharine G. and Taylor, Susan K., Firms&Apos; Use of Outside Contractors: Theory and Evidence (September 1993). NBER Working Paper No. w4468, Available at SSRN: https://ssrn.com/abstract=227311

Katharine G. Abraham (Contact Author)

University of Maryland - Joint Program in Survey Methodology and Department of Economics ( email )

College Park, MD 20742
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Susan K. Taylor

University of Maryland

College Park
College Park, MD 20742
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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