Labor Market Intermediation: What It Is, Why It Is Growing, and Where It Is Going

摘要: Two developments--one institutional, one technological--are changing how employers identify, evaluate, and select job candidates. The institutional change is the rapid diffusion of "non-standard" work relationships in United States OECD--particularly temporary help employment--through which firms employ workers at arms length frequently audition them for direct hire positions. technological deployment electronic candidate assessment systems, screen vet applicants using personality tests online background checks. Both developments underscore growing importance "labor market intermediation"--mechanisms or institutions that intercede between seekers employers. A major strand my research concerns growth labor intermediation: it affects way seek jobs, who hired, potentially what consequences follow. Here, I describe several recent NBER papers explore these questions. Why Temporary Help Employment Growing? Although have supplied to U.S. businesses since 1940s, only relatively recently has industry's, explosive brought sustained national attention. From 1972 2000, employment industry increased five times more rapidly than economy-wide. economy produced a record number new jobs 1990s, laid claim fully 10 percent all this creation. At their peak agencies accounted almost 3 daily employment. This not been limited States. In virtually OECD countries, surged last decade. (1) so rapidly? "Outsourcing Will," (2) show key explanation rising risk wrongful-discharge litigation faced by employers--what many Europeans would call protection. Uniquely industrialized world, long had legal presumption can be fired "at will"--that is, "for good cause no cause, even bad cause," quote famous 1884 Tennessee Supreme Court Decision. During 1970s 1980s, eroded rapidly: most state courts created classes common-law restrictions employers' ability fire. These exceptions generated both costly substantial uncertainty among about when could terminated with impunity. assess whether adoption laws part explain increase demand workers? If operate under same firing strictures as direct-hire employers, should differentially affect As discussed paper, however, are quite unlikely fall afoul laws. By nature, understood offer security. Moreover, readily, "fire" worker simply ending her current assignment providing replacement. particularly litigate if she unaware terminated. factors provide comparative advantage terminating states offering protections. To evaluate hypothesis, contrast adopting those contemporaneous time period. find incidence (13) year following adoption, saw 13 excess (on average). …