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October 1996

Earnings and benefits of workers in alternative work arrangements

Steven F. Hipple, Jay C. Stewart

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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