TY  - RPRT
        AU  - Goos, Maarten
AU  - Salomons, Anna
AU  - Scheer, Bas
AU  - Berge, Wiljan Van den
        TI  - Domestic Outsourcing and Worker Outcomes: Evidence from Staffing Firms
        PY  - 2025/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18228
        UR  - https://www.iza.org/index.php/publications/dp18228
        AB  - The rising incidence of alternative work arrangements, such as outsourcing, raises important questions about worker outcomes in such non-standard labor contracts. We study this question in the Netherlands, a country with a rapid rise in flexible labor contracts, using administrative employer-employee data from 2006--2019. To identify the causal impact of outsourcing, we take advantage of a legal arrangement called "payrolling", where workers hired by one firm are placed on a staffing firm's payroll while maintaining their job duties at the original firm. We find that outsourced workers experience worse labor market outcomes compared to a matched control group. These include persistently lower employment probability, lower hourly wage growth, a lower incidence of permanent contracts, and strikingly reduced pension contributions. This suggests that outsourcing erodes employment protection and job quality and leads to long-term scarring of labor market outcomes.
        KW  - non-standard work arrangements
KW  - outsourcing
KW  - staffing companies
KW  - labor contracts
        ER  -