Firms' Use of Outside Contractors: Theory and Evidence
          
                  Katharine G. Abraham
      
  
, 
            3
      (    
                  14
      
  
)
            Journal of Labor Economics
      
            394-424
      
            July
      
            1996
          
                          
      
  
  Abstract
              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.
