Contingent and internal employment systems: Substitutes or complements?

Abstract

Internal and contingent employment can be either substitutes or complements: Contingent workers are used either to replace the internal employment system or to complement it. These two perspectives are tested, and the relationship between them is explored. My findings strongly support the complementary perspective, as the practices usually associated with job security are positively associated with the use of temporary workers. Above all, internal practices play an important role in deciding to use contingent employees. My study emphasizes that the institutional employment structure cannot be overlooked when studying temporary employees.