Predicting the Use of External Labor Arrangements: A Transaction Costs Perspective

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Firms' use of external labor arrangements (ELAs), such as temporary, contract and seasonal workers, has become increasingly prevalent over the last two decades. Despite the increasing importance of this phenomenon, little is known about firms' reasons for using ELAs. Most research to date has been exploratory, using qualitative methods or archival data not well suited to the constructs. The result of this research has been a long and often contradictory list of proposed antecedents of ELA use. In this study, I tested the ability of the transaction costs theory to predict when firms will fill a given job using an ... continued below

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vii, 121 leaves: ill.

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Masters, John K. (John Kendall) December 1998.

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This dissertation is part of the collection entitled: UNT Theses and Dissertations and was provided by UNT Libraries to Digital Library, a digital repository hosted by the UNT Libraries. It has been viewed 18 times . More information about this dissertation can be viewed below.

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  • Masters, John K. (John Kendall)

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Description

Firms' use of external labor arrangements (ELAs), such as temporary, contract and seasonal workers, has become increasingly prevalent over the last two decades. Despite the increasing importance of this phenomenon, little is known about firms' reasons for using ELAs. Most research to date has been exploratory, using qualitative methods or archival data not well suited to the constructs. The result of this research has been a long and often contradictory list of proposed antecedents of ELA use.

In this study, I tested the ability of the transaction costs theory to predict when firms will fill a given job using an ELA rather that a permanent employment relationship. According to this theory, three characteristics of the job will determine whether the job will be filled using an ELA: transaction-specific investment, likelihood of repetition, and uncertainty of performance. Firms will be less likely to staff a given job using an ELA when the job requires investment in idiosyncratic skills, when the firm is likely to require a person with that set of skills regularly, and when performance in that job is difficult to measure.

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vii, 121 leaves: ill.

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UNT Theses and Dissertations

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  • December 1998

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  • March 24, 2014, 8:07 p.m.

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  • Aug. 6, 2014, 2:25 p.m.

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Citations, Rights, Re-Use

Masters, John K. (John Kendall). Predicting the Use of External Labor Arrangements: A Transaction Costs Perspective, dissertation, December 1998; Denton, Texas. (digital.library.unt.edu/ark:/67531/metadc277753/: accessed October 23, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; .