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The Contingent Worker Supplement (CWS) to the Current Population Survey— administered six times between 1995 and 2017—is uniquely valuable in providing detailed information on a consistent set of work arrangements in a large, nationally representative survey. Drawing on data from all six CWS waves, researchers provide an in-depth picture of the nature of contingent and alternative work and whether and how employment arrangements are changing in the United States. Researchers exploit questions in the CWS to distinguish between three types of self- employment, including two types of independent contractors. Researchers also link data on individuals in the CWS to their data in the CPS from the prior and the subsequent month to better understand transitions into and out of contingent and alternative work arrangements.

The analyses reveal considerable heterogeneity in the characteristics of workers in various work arrangements and indicators of the quality of those jobs, including across types of self-employment. Although the CWS shows no overall trend increase in any contingent or alternative work arrangement, the detailed analyses reveal some interesting subgroup trends within certain arrangements. Additionally, researchers show that individuals who have lost their jobs, are unemployed, or are out of the workforce but want employment commonly end up in contingent and alternative work arrangements. They find, however, that dissatisfaction with alternative work arrangements is relatively high and subsequent employment rates are relatively low, particularly among those who had transitioned to contingent, temporary help, day laborer, and on-call jobs. This descriptive evidence raises concerns about their use as stepping stones to regular employment, and the issue warrants further study.

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Key Takeaways

• Researchers found that individuals who have lost their jobs, are unemployed, or are out of the workforce but want employment commonly end up in contingent and alternative work arrangements.
• Although the CWS shows no overall trend increase since 2005 in any contingent or alternative work arrangement, researchers found subgroup trends within certain arrangements. The data show a significant increase since 2005 in the use of temporary help workers in manufacturing and also in production and transportation and material moving occupations, which are heavily used in the manufacturing sector.
• Temporary help jobs are disproportionately held by those without a college degree, minorities, and youth. On-call jobs are disproportionately held by those with less formal education.
• Dissatisfaction with alternative work arrangements was relatively high and subsequent employment rates are relatively low, particularly among those who had transitioned to contingent, temporary help, day laborer, and on-call jobs.

Citation

Abraham, K., Houseman, S. (2020). University of Maryland. Contingent and Alternative Employment: Lessons from the Contingent Worker Supplement, 1995-2017. Chief Evaluation Office, U.S. Department of Labor.

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The Department of Labor’s (DOL) Chief Evaluation Office (CEO) sponsors independent evaluations and research, primarily conducted by external, third-party contractors in accordance with the Department of Labor Evaluation Policy and CEO’s research development process.