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Labor in the network society 191outcomes for workers. In the first ever quantitative study to try to measure theoverall impact of labor market intermediaries in the region, for example, it didnot appear that intermediaries had any significant direct impact on wages,though there was a very strong relationship between the use of temporary helpagencies and lack of access to health insurance (Pastor et al., 2003). Therewas, however, a clear statistical relationship between the use of intermediariesand the character of people’s social networks. Using a measure of “socialconnectedness,” the study found that those who are more socially connectedare less likely to use intermediaries. Furthermore, of those people who do useintermediaries, those with strong social connectedness are more likely to use“better” intermediaries – those intermediaries that provide a more comprehensiveset of services, primarily community colleges, professional associations,and unions, rather than temporary agencies.As qualitative studies of intermediaries in Silicon Valley have repeatedlypointed out, however, it is a mistake to assume that certain whole categoriesof intermediaries are “bad” and other categories are “good.” In comparing afor-profit staffing services firm and a union-affiliated non-profit agency, forexample, Neuwirth (2004) found surprising instances of the for-profit firmbeing more effective than the union-affiliated agency in advocating on behalfof their employees’ rights and improving working conditions in their clientfirms, for temporary and permanent employees alike. Similarly, detailed studiesof non-profit intermediaries find a wide array of effectiveness in improvingoutcomes for individuals in the labor market, with some agenciessignificantly improving long-term outcomes but many agencies having nomeasurable impact whatsoever (Harrison and Weiss, 1998; Benner et al.,2001).Finally, though systematic qualitative research on labor market intermediariesis only beginning to emerge, it seems clear that intermediaries cannot beunderstood in isolation. Many staffing service firms are forming complexnetworking relationships with other staffing agencies, while intermediarynetworks bringing together public-sector, private-sector, and membershipassociations are also forming (Giloth, 2004; Neuwirth, 2004). Ultimately, it isthe nature of these network relationships, and the relationships that intermediarieshave with both the demand and supply side of the labor market, thatshape labor market outcomes for workers.Thus, in trying to understand the implications of the emerging social structuresshaped by these complex labor market dynamics, one thing that is clearis that most labor market statistics provide very limited insights. Crosssectionalmeasures of the distribution of jobs by industry and occupation, orcross-sectional measurements of wage distributions, provide useful understandingsof changes in the structure of the economy, but provide limitedinsights into the actual conditions individuals experience in the labor market.
192 Chris BennerFlexible labor markets are risky labor markets, and workers face high levels ofuncertainty and volatility over time in their employment opportunities andworking conditions – experiences that cannot be captured in cross-sectionaldata. To fully assess outcomes for workers in these flexible labor markets it isimportant to understand not just patterns of jobs and wages, but patterns ofcareers and earnings profiles over time (Arthur et al., 1989). The term careersin this context applies to all workers, not just those with neatly orderedpatterns with consistent upward mobility. Studying careers requires that weincorporate a time-dimension into our analysis of labor market outcomes,trying to understand how work histories reflect employment stability andinstability, skills and experience gained or made irrelevant, relationshipsnurtured or lost, risks or opportunities encountered. A focus on careersrequires an understanding of relationships, both within and between firms,which cut across work and non-work activities (Arthur and Rouseau, 1996).In developing this understanding of the implications of flexibility and intermediationon long-term labor market outcomes, particular attention needs tobe paid to three key areas. First, it is critical to understand the nature and qualityof people’s skills, information, and knowledge, how they gain these skills,and how these skills evolve over time. Clearly, formal education plays animportant role in shaping labor market outcomes, but differences in formaleducation and experience can only explain roughly one-third of the variety inwage distribution, much less career outcomes (Gottschalk, 1997; Reed, 1999).We need a much better understanding of the factors shaping individuals’access to life-long learning opportunities, their incorporation into and effectiveparticipation in learning communities, and how growing flexibility and intermediationare shaping the evolution of those learning practices over time(Benner, 2003c).Second, we need a better understanding of the ways in which flexibility andintermediation are shaping the nature and quality of people’s social networks.Clearly, there is no shortage of research on social networks, and many studieshave demonstrated that social networks are important not only in findingemployment (Granovetter, 1995; Fernandez and Weinberg, 1997), but also indeveloping skills and learning over time, advancing and improving earningsacross firms, coping with increasing lay-offs and job loss, and effectively dealingwith a range of other issues that shape long-term employment outcomes(Lave and Wenger, 1991; Wial, 1991; Hull, 1997; Herzenberg et al., 1998;Saxenian, 2000). Yet it is important to recognize that social networks, thoughhighly fluid, still shape patterns of exclusion and inclusion (Castells, 1998;Graham and Marvin, 2001). In the context of flexible labor markets, we needa better understanding of the patterns of inclusion and exclusion in cross-firmsocial networks, and, most particularly, the ways in which intermediariesshape both the strength and quality of people’s social connectedness.
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192 Chris BennerFlexible labor markets are risky labor markets, and workers face high levels ofuncertainty and volatility over time in their employment opportunities andworking conditions – experiences that cannot be captured in cross-sectionaldata. To fully assess outcomes for workers in these flexible labor markets it isimportant to understand not just patterns of jobs and wa<strong>ge</strong>s, but patterns ofcareers and earnings profiles over time (Arthur et al., 1989). The term careersin this context applies to all workers, not just those with neatly orderedpatterns with consistent upward mobility. Studying careers requires that weincorporate a time-dimension into our analysis of labor market outcomes,trying to understand how work histories reflect employment stability andinstability, skills and experience gained or made irrelevant, relationshipsnurtured or lost, risks or opportunities encountered. A focus on careersrequires an understanding of relationships, both within and between firms,which cut across work and non-work activities (Arthur and Rouseau, 1996).In developing this understanding of the implications of flexibility and intermediationon long-term labor market outcomes, particular attention needs tobe paid to three key areas. First, it is critical to understand the nature and qualityof people’s skills, information, and knowled<strong>ge</strong>, how they gain these skills,and how these skills evolve over time. Clearly, formal education plays animportant role in shaping labor market outcomes, but differences in formaleducation and experience can only explain roughly one-third of the variety inwa<strong>ge</strong> distribution, much less career outcomes (Gottschalk, 1997; Reed, 1999).We need a much better understanding of the factors shaping individuals’access to life-long learning opportunities, their incorporation into and effectiveparticipation in learning communities, and how growing flexibility and intermediationare shaping the evolution of those learning practices over time(Benner, 2003c).Second, we need a better understanding of the ways in which flexibility andintermediation are shaping the nature and quality of people’s social networks.Clearly, there is no shorta<strong>ge</strong> of research on social networks, and many studieshave demonstrated that social networks are important not only in findin<strong>ge</strong>mployment (Granovetter, 1995; Fernandez and Weinberg, 1997), but also indeveloping skills and learning over time, advancing and improving earningsacross firms, coping with increasing lay-offs and job loss, and effectively dealingwith a ran<strong>ge</strong> of other issues that shape long-term employment outcomes(Lave and Wen<strong>ge</strong>r, 1991; Wial, 1991; Hull, 1997; Herzenberg et al., 1998;Saxenian, 2000). Yet it is important to recognize that social networks, thoughhighly fluid, still shape patterns of exclusion and inclusion (Castells, 1998;Graham and Marvin, 2001). In the context of flexible labor markets, we needa better understanding of the patterns of inclusion and exclusion in cross-firmsocial networks, and, most particularly, the ways in which intermediariesshape both the strength and quality of people’s social connectedness.