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October 1996, Vol. 118, No. 10

Earnings and benefits of workers in alternative work arrangements

Steven Hipple
Economist, Office of Employment and Unemployment Statistics, Bureau of Labor Statistics

Jay Stewart
Research Economist, Office of Employment Research and Program Development, Bureau of Labor Statistics

Workers in alternative work arrangements were generally less likely to receive health insurance or pension coverage from their employers, but many earned higher wages than workers in traditional arrangements. It has been argued that some alternative work arrangements have come about through companies’ efforts to reduce costs. Firms often find it cheaper to contract out for services such as security and payroll than to perform these functions in-house. This article compares the earnings and benefits of workers in alternative work arrangements with those of workers in traditional arrangements.

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