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Not so standard anymore? Employment duality in Germany
[Vom Normalarbeitsverhältnis zu atypischen Verträgen? Die Dualisierung des deutschen Arbeitsmarktes]

Author

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  • Werner Eichhorst

    (Institute for the Study of Labor (IZA))

  • Verena Tobsch

    (INES)

Abstract

This paper gives an overview of the transformation of the German labour market since the mid-1990s with a special focus on the changing patterns of labour market segmentation or ‘dualisation’ of employment in Germany. While labour market duality in Germany can partially be attributed to labour market reforms promoting, in particular, non-standard forms of employment and allowing for an expansion of low pay, structural changes in the economy as well as strategic choices by employers and social partners also play a prominent role. Our main argument is that the liberalization of non-standard contracts has contributed to the expansion of overall labour market inclusion and job growth in Germany and that at least some forms of non-standard work provide stepping stones into permanent regular jobs. Atypical contracts do not necessarily undermine the dominance of standard employment relationships and job quality in this primary segment but rather form a supplementary part of employment in sectors and occupations that depend on more flexible and maybe cheaper forms of labour.

Suggested Citation

  • Werner Eichhorst & Verena Tobsch, 2015. "Not so standard anymore? Employment duality in Germany [Vom Normalarbeitsverhältnis zu atypischen Verträgen? Die Dualisierung des deutschen Arbeitsmarktes]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 48(2), pages 81-95, August.
  • Handle: RePEc:spr:jlabrs:v:48:y:2015:i:2:d:10.1007_s12651-015-0176-7
    DOI: 10.1007/s12651-015-0176-7
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    1. Werner Eichhorst & Otto Kaufmann & Regina Konle-Seidl (ed.), 2008. "Bringing the Jobless into Work?," Springer Books, Springer, number 978-3-540-77435-8, December.
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    Cited by:

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    2. Reinhold, Mario & Thomsen, Stephan L., 2017. "The changing situation of labor market entrants in Germany : a long-run analysis of wages and occupational patterns," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 50(1), pages 161-174.
    3. Lukas Jerg & Jacqueline O’Reilly & Karin Schulze Buschoff, 2021. "Adapting social protection to the needs of multiple jobholders in Denmark, the United Kingdom and Germany," Transfer: European Review of Labour and Research, , vol. 27(2), pages 237-253, May.
    4. Mario Reinhold & Stephan Thomsen, 2017. "The changing situation of labor market entrants in Germany [Die veränderliche Situation für Berufseinsteiger in Deutschland]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 161-174, August.
    5. Gianna C. Giannelli & Ursula Jaenichen & Thomas Rothe, 2016. "The evolution of job stability and wages after the implementation of the Hartz reforms [Die Entwicklung von Beschäftigungsstabilität und Löhnen seit Einführung der Hartz-Reformen]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(3), pages 269-294, November.
    6. Tünte, Markus, 2017. "Der Funktionswandel von externen Arbeitsmärkten und die Heterogenität von Prekarisierungsrisiken [Change of external labour markets and new risks of precariousness]," Industrielle Beziehungen. Zeitschrift für Arbeit, Organisation und Management, Verlag Barbara Budrich, vol. 24(1), pages 54-74.
    7. Eichhorst, Werner & Kendzia, Michael J., 2016. "Workforce segmentation in Germany: From the founding era to the present time (Die Segmentierung der Belegschaft in Deutschland: Von der Gründerzeit bis heute)," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 49(4), pages 297-315.
    8. Zoe Adams & Simon Deakin, 2014. "Institutional Solutions to Precariousness & Inequality in Labour Markets," Working Papers wp463, Centre for Business Research, University of Cambridge.
    9. repec:scn:ecprob:y:2018:i:3:p:16-23 is not listed on IDEAS
    10. Gabriela Galassi, 2021. "Labor Demand Response to Labor Supply Incentives: Lessons from the German Mini-Job Reform," Staff Working Papers 21-15, Bank of Canada.
    11. Daniyar T. Baitenizov & Igor N. Dubina & David F. J. Campbell & Elias G. Carayannis & Tolkyn A. Azatbek, 2019. "Freelance as a Creative Mode of Self-employment in a New Economy (a Literature Review)," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 1-17, March.
    12. Lisi, Domenico & Malo, Miguel A., 2017. "The impact of temporary employment on productivity : The importance of sectors' skill intensity," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 50(1), pages 91-112.
    13. Kelly, Elish & Barrett, Alan, 2017. "Recent Developments in the Irish Labour Market: Is It All Good News?," IZA Discussion Papers 10541, Institute of Labor Economics (IZA).
    14. Reinhold, Mario & Thomsen, Stephan, 2015. "Patterns of Labour Market Entry of High-Skilled Workers in Germany," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113018, Verein für Socialpolitik / German Economic Association.
    15. Werner Eichhorst & Michael J. Kendzia, 2016. "Workforce segmentation in Germany: from the founding era to the present time [Die Segmentierung der Belegschaft in Deutschland: von der Gründerzeit bis heute]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 297-315, December.
    16. Eichhorst, Werner & Kendzia, Michael J., 2016. "Workforce segmentation in Germany: From the founding era to the present time (Die Segmentierung der Belegschaft in Deutschland: Von der Gründerzeit bis heute)," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 49(4), pages 297-315.
    17. Katharina Dengler & Katrin Hohmeyer & Cordula Zabel, 2021. "Welfare recipients’ transition into employment and employment stability in Germany," LABOUR, CEIS, vol. 35(4), pages 450-484, December.
    18. Lisi, Domenico & Malo, Miguel A., 2017. "The impact of temporary employment on productivity : The importance of sectors' skill intensity," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 50(1), pages 91-112.
    19. Bachmann, Ronald & Bechara, Peggy & Felder, Rahel & Rzepka, Sylvi & Schaffner, Sandra & Tamm, Marcus, 2015. "Risiken atypischer Beschäftigungsformen für die berufliche Entwicklung und Erwerbseinkommen im Lebensverlauf: Endbericht," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 236525.
    20. Domenico Lisi & Miguel A. Malo, 2017. "The impact of temporary employment on productivity [Auswirkungen befristeter Beschäftigung auf die Produktivität]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 91-112, August.
    21. Hyojin Seo, 2021. "‘Dual’ labour market? Patterns of segmentation in European labour markets and the varieties of precariousness," Transfer: European Review of Labour and Research, , vol. 27(4), pages 485-503, November.
    22. Zoe Adams & Simon Deakin, 2014. "Institutional Solutions to Precariousness and Inequality in Labour Markets," British Journal of Industrial Relations, London School of Economics, vol. 52(4), pages 779-809, December.
    23. Andreea Alexandra Piriu, 2022. "Globalization and Gender‐Specific Patterns in Individual Fertility Decisions," Population and Development Review, The Population Council, Inc., vol. 48(1), pages 129-160, March.
    24. Galassi, Gabriela, 2021. "Labor Demand Response to Labor Supply Incentives: Lessons from the German Mini-Job Reform," IZA Discussion Papers 14248, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Germany; Labour market reforms; Dualisation; Non-standard work;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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