TY - JOUR AU - Abraham,Katharine G. AU - Taylor,Susan K. TI - Firms' Use of Outside Contractors: Theory and Evidence JF - National Bureau of Economic Research Working Paper Series VL - No. 4468 PY - 1993 Y2 - September 1993 UR - http://www.nber.org/papers/w4468 L1 - http://www.nber.org/papers/w4468.pdf N1 - Author contact info: Katharine G. Abraham Joint Program in Survey Methodology 1218 LeFrak Hall University of Maryland College Park, MD 20742 Tel: 301/405-1004 Fax: 301/314-7912 E-Mail: kabraham@survey.umd.edu AB - A firm's decision to contract out for business support services may be influenced by the wage and benefit savings it could realize, the volatility of its output demand and the availability of specialized skills possessed by the outside contractor. Analysis of newly-available establishment-level data shows that all three of these factors help to explain observed contracting behavior. The reported empirical findings are relevant both for understanding the recent growth in business support service contracting and for understanding firms' relationships with their own employees. ER -