Accounts of late-twentieth-century capitalist restructuring have emphasized the decline of “permanent” work contracts and the growth of more “flexible” ways of employing labor. Most of these accounts have argued that, under conditions of global competition, firms seek to reduce the cost of wages and benefits by hiring more temporary workers. Such accounts assume permanent labor contracts to be a norm that is violated only when economic systems come under pressure. This essay adopts a different perspective, suggesting that, in fact, permanent labor contracts have been normative only in certain historical situations (such as the twentieth century United States). In a global and trans-historical context, these contracts have been introduced under specific conditions to solve particular kinds of problems. Thus, this study attempts to shift the question from “why is permanent work declining?” to “where and why do permanent work contracts emerge?”