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124 Monthly Lab. Rev. 28 (2001)
Characteristics of and Preference for Alternative Work Arrangements, 1999

handle is hein.journals/month124 and id is 248 raw text is: Characteristics of and preference for alternative work arrangements, 1999 Characteristics of individuals employed in alternative work arrangements were similar to those of the 1995 and 1997 surveys; however, the proportion of these workers who prefer these arrangements has increased since the mid-1990s The proportion of the workforce consisting of independent contractors, on-call work- ers, temps, and contractors is small, and the shares of these workers are not growing, ac- cording to the Bureau of Labor Statistics 1999 Contingent and Alternative Work Arrangements Survey.' In 1999, workers in all four alternative arrangements combined accounted for 9.3 per- cent of total employment, compared with 9.9 per- cent in 1997 and 9.8 percent in 1995. Although independent contractors remained the largest group numerically, their share of total employ- ment declined slightly between 1997 and 1999. The proportions of total employment comprised of the other three arrangements changed little over the period. (See exhibit I and table 1.) Alter- native work arrangements are defined in exhibit 1. Perhaps the most significant finding from the 1999 data is that more workers in alternative em- ployment arrangements are choosing these ar- rangements. Data on preference for the arrange- ments show that more workers actually prefer their alternative work arrangements to traditional jobs. This was true overall for on-call workers, and for temps and independent contractors with 3 or fewer years of tenure. Furthermore, among the four groups, enormous diversity exists in terms of demographics, earnings, benefit cover- age, and preference for the arrangements. This article uses the data from the 1999 Con- tingent and Alternative Work Arrangements supplement to the February Current Population Survey (CPS) to address several issues relating to job quality and how or if it has changed since the prior surveys. In 1995 and 1997, the arrange- ments differed widely from each other in their demographics, preferences, and pay. Although it may be tempting to lump these arrangements together, a clear distinction can be drawn among them in terms of job quality and satisfaction. In particular, independent contractors and workers provided by contract companies have very dif- ferent experiences from both on-call and tempo- rary help agency workers. Since the mid-i 980s, some employment ana- lysts have debated the issue of the size and growth of the workforce in nonstandard or al- ternative employment arrangements. Is a grow- ing trend in nontraditional employment arrange- ments an indication that more American workers are being forced into bad jobs?2 Some ana- lysts stereotype workers who are in alternative arrangements as being in substandard jobs, of- ten citing low earnings, low rates of health insur- ance and pension coverage, job instability, and dissatisfaction with work.' These concerns have ushered in a host of articles and debates on the topic. Proponents of the arrangements argue that these jobs provide much needed flexibility in a tight labor market for both employers and em- ployees. They claim that these arrangements enable employers to more easily modify their hir- ing levels and cost effectiveness when demand for their goods or services fluctuates.4 On the 28 Monthly Labor Review March 2001 Marisa DiNatale Marisa DiNatale is an economist in the Office of Employment and Unemployment Statistics, Bureau of Labor Statistics.

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