Paying the price for flexibility: unemployment insurance and the temporary staffing industry.

Mehta, Chirag, and Nik Theodore.

WorkingUSA 6, no. 3 (2002): 84-110.


Increasingly, employers reduce costs through outsourcing work to temporary staffing agencies, displacing the price of unemployment to temporary staffing agencies and their workers. Outsourcing work, Mehta and Theodore observe, reduces the cost for on-site employers while greatly increasing labor market turbulence even in times of economic growth, as temporary staffing agencies lay off workers to reduce their own unemployment insurance costs.

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