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Domestic Outsourcing in the U.S.: A Research Agenda to Assess Trends and Effects on Job Quality

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  • Bernhardt, Annette
  • Batt, Rosemary
  • Houseman, Susan
  • Appelbaum, Eileen

Abstract

The goal of this paper is to develop a comprehensive research agenda to analyze trends in domestic outsourcing in the U.S. – firms’ use of contractors and independent contractors – and its effects on job quality and inequality. In the process, we review definitions of outsourcing, the available scant empirical research, and limitations of existing data sources. We also summarize theories that attempt to explain why firms contract out for certain functions and assess their predictions about likely impacts on job quality. We then lay out in detail a major research initiative on domestic outsourcing, discussing the questions it should answer and providing a menu of research methodologies and potential data sources. Such a research investment will be a critical resource for policymakers and other stakeholders as they seek solutions to problems arising from the changing nature of work.

Suggested Citation

  • Bernhardt, Annette & Batt, Rosemary & Houseman, Susan & Appelbaum, Eileen, 2016. "Domestic Outsourcing in the U.S.: A Research Agenda to Assess Trends and Effects on Job Quality," Institute for Research on Labor and Employment, Working Paper Series qt2fm4m444, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt2fm4m444
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    3. Virginia Doellgast & Matthew Bidwell & Alexander J. S. Colvin, 2021. "New Directions in Employment Relations Theory: Understanding Fragmentation, Identity, and Legitimacy," ILR Review, Cornell University, ILR School, vol. 74(3), pages 555-579, May.
    4. Nicola Gagliardi & Benoît Mahy & François Rycx, 2019. "Does firms’ position in global value chains matter for workers’ wages?. An overview with a gender perspective," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(4), pages 55-62.
    5. Andrea Atencio De Leon & Claudia Macaluso & Chen Yeh, 2023. "Outsourcing Dynamism," Working Papers 23-64, Center for Economic Studies, U.S. Census Bureau.
    6. Nicola Gagliardi & Benoît Mahy & François Rycx, 2021. "Upstreamness, Wages and Gender: Equal Benefits for All?," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 52-83, March.
    7. Eileen Appelbaum, 2017. "Domestic Outsourcing, Rent Seeking, and Increasing Inequality," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(4), pages 513-528, December.
    8. Alexandre Mas & Amanda Pallais, 2020. "Alternative Work Arrangements," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 631-658, August.
    9. Christine A. Riordan & Alexander M. Kowalski, 2021. "From Bread and Roses to #MeToo: Multiplicity, Distance, and the Changing Dynamics of Conflict in IR Theory," ILR Review, Cornell University, ILR School, vol. 74(3), pages 580-606, May.
    10. John Schmitt, 2017. "Comments on “Domestic Outsourcing, Rent Seeking, and Increasing Inequality†by Eileen Appelbaum," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(4), pages 529-533, December.
    11. Delgado, Mercedes & Mills, Karen G., 2020. "The supply chain economy: A new industry categorization for understanding innovation in services," Research Policy, Elsevier, vol. 49(8).
    12. Hammerling, Jessie HF, 2022. "Financial Drivers of Domestic Outsourcing: Case Study of Food Services in the San Francisco Bay Area," Institute for Research on Labor and Employment, Working Paper Series qt9sz919zw, Institute of Industrial Relations, UC Berkeley.

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