Regulatory Differentials and Triangular Employment Growth in the U.S. and Canada


Timothy J. Bartkiw

This paper analyzes the relationship between triangular employment growth and regulatory differentials, understood as differential effects of regulation across direct and triangular employment forms.  Using the aggregate of "temporary help" and "professional employer" services as a proxy for the mass of triangular employment, data analysis suggests relatively greater growth of this phenomenon in the U.S. than in Canada in recent decades.   Comparative legal analysis then provides support for the view of regulatory differentials as a causal factor, by outlining the historical existence of significant regulatory differentials in two key labour law sub-fields in the U.S., lacking in Canada, and by explaining how in the U.S., employer status rules have provided somewhat greater access to underlying regulatory differentials than occurs in Canada.