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New Forms of Dualization? Labour Market Segmentation Patterns in the UK from the Late 90s Until the Post-crisis in the Late 2000s

Author

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  • Yeosun Yoon

    (University of Kent)

  • Heejung Chung

    (University of Kent)

Abstract

There has been an increase in literature that examines the patterns of dualization in labour markets across different welfare states. However, rarely do these studies empirically explore how labour markets are divided. Rather they assume a certain type of division to exist in a market, and apply this assumption to measure the extent to which this division can be observed. This paper aims to overcome this limitation by examining the labour market dualization patterns of the UK’s employed population over the past decade through a latent class analysis model. Our analysis shows that the UK labour market could be characterised by a three group system during the period between 1999 and 2010. This divide supports the theoretical literature on labour market divisions in that there are clear distinctions between those who are insiders and those who are not. However, what is interesting is that rather than having a dichotomised pattern of division of insiders and outsiders, we find a third group which can be characterised as a “future insecure” group. What is more, the main characteristics that divide the groups are not contract types (involuntary part-time or temporary employment), but rather income levels (low pay), occupational profile (low-skilled occupations) and social security benefits stemming from employment (occupational pension coverage). From the results, we conclude that the patterns and characteristics of labour market divisions may not be generalised and further empirical investigations are needed to understand the cross-national variations.

Suggested Citation

  • Yeosun Yoon & Heejung Chung, 2016. "New Forms of Dualization? Labour Market Segmentation Patterns in the UK from the Late 90s Until the Post-crisis in the Late 2000s," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 609-631, September.
    • Handle: RePEc:spr:soinre:v:128:y:2016:i:2:d:10.1007_s11205-015-1046-y
    DOI: 10.1007/s11205-015-1046-y
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    2. O’Sullivan Maeve & Cross Christine & Lavelle Jonathan, 2020. "The forgotten labour force: Characteristics and trends for older female part-time workers in Ireland," The Irish Journal of Management, Sciendo, vol. 39(1), pages 47-60, August.
    3. 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.
    4. Ji Young Kang, 2022. "Trajectories of Labor Market Inequalities and Health Among Employees in Korea: Multichannel Sequence Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 381-400, February.
    5. Trevor Peckham & Brian Flaherty & Anjum Hajat & Kaori Fujishiro & Dan Jacoby & Noah Seixas, 2022. "What Does Non-standard Employment Look Like in the United States? An Empirical Typology of Employment Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 555-583, September.
    6. Milla Salin & Jouko Nätti, 2019. "Who Wants to Work More? Multilevel Study on Underemployment of Working Mothers in 22 European Countries," Social Sciences, MDPI, vol. 8(10), pages 1-22, October.

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