Nonstandard Work and Asset Accumulation

Ohio State University Research Foundation -Do Not Use, Columbus OH

Investigators

Abstract

SES- 0239995 Lisa Keister Ohio State University Research Foundation This research investigates the effect of nonstandard work on worker asset accumulation. Researchers have documented extreme inequalities in asset ownership, but the processes that create these inequalities are not well understood. One potentially important contributing factor that has attracted little attention is a rise in nonstandard work. Part-time, temporary, and contract work can be flexible and may allow workers to evaluate a potential job before accepting a permanent position. Yet compensation and benefits can be relatively low for many nonstandard workers, altering the saving patterns of these workers. This project explores (1) whether nonstandard workers accumulate assets differently than traditional workers, (2) whether demographic traits, work histories, and workplace traits of nonstandard workers affect their patterns of asset accumulation, and (3) the implications of these patterns for aggregate-level wealth inequality and related public policies. The research will test numerous hypotheses drawn from social and economic theory to understand the relationship between nonstandard work and asset ownership. A unique contribution of this study is an effort to understand the relationship between nonstandard jobs and assets during specific working years, as a trajectory or path over time, and projected at retirement. The PI will synthesize data from three survey data sets and use simulation modeling to exploit these data, to investigate distributional outcomes, and to examine policy implications. Multiple outcomes will be used to explore these relations, including asset ownership, pension ownership, accumulation trajectories over time, projected well being during retirement, and aggregate-level wealth inequality. The study holds promise for evaluating theories about inequality and well being, for expanding understanding of the consequences of nonstandard work, and for anticipating the need for new policies designed to protect nonstandard workers during retirement.