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Publication Date



Upjohn Institute Working Paper No. 02-87

**Published Version**

In Benefits for the Workplace of the Future, edited by Olivia S. Mitchell, David S. Blitzstein, Michael Gordon, and Judith F. Mazo. Philadelphia, PA: University of Pennsylvania Press, 2003, pp. 89-109




Workers in flexible staffing arrangements - including temporary agency, direct-hire temporary, on-call, and contract workers - are much less likely than regular, direct-hire employees to be covered by laws mandating or regulating workplace benefits. Workers in such arrangements, in turn, are much less likely to receive pension, health insurance, and other benefits on the job. This paper documents these differences in coverage by benefits regulations and differences in benefits receipt. The paper also reviews evidence on the incentives employers have to use workers in these various flexible staffing arrangements. Although reducing benefits costs is not the only reason employers use flexible staffing arrangements, it is an important factor motivating many employers to use them, and the level of and growth in these arrangements would be lower in the absence of this incentive.

Issue Date

August 2001

Subject Areas

LABOR MARKET ISSUES; Employment relationships; Nonstandard work arrangements; Temporary employment; Wages, health insurance and other benefits; Nonwage benefits; WORKFORCE DEVELOPMENT


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Houseman, Susan N. 2001. "The Benefits Implications of Recent Trends in Flexible Staff Arrangements." Upjohn Institute Working Paper No. 02-87. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp02-87