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Inter-firm dependency and employment inequalities: Theoretical hypotheses and empirical tests on French subcontracting relationships

Author

Listed:
  • Corinne Perraudin

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Héloïse Petit

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Nadine Thevenot

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Bruno Tinel

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Julie Valentin

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This article highlights the importance of power relations in subcontracting relationships and analyses their impact on firms' employment management practices. We show that the use of subcontracting creates a chain of inter-firm economic dependency because it leads the principal contractor to plan and control the activities of the subcontractors. The hypothesis is that this chain of dependency influences both the skill structure and wage levels. Empirical tests carried out on French data confirm that firms that subcontract outsource execution tasks and that the hierarchy of firms impacts employees' wage levels.

Suggested Citation

  • Corinne Perraudin & Héloïse Petit & Nadine Thevenot & Bruno Tinel & Julie Valentin, 2014. "Inter-firm dependency and employment inequalities: Theoretical hypotheses and empirical tests on French subcontracting relationships," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00772536, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00772536
    DOI: 10.1177/0486613413497912
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    Cited by:

    1. Laurence Lizé, 2021. "Conditions de travail dans la sous-traitance : une enquête auprès de salariés du nettoyage et de la sécurité," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03217182, HAL.
    2. Dick Bryan & Michael Rafferty & Phillip Toner & Sally Wright, 2017. "Financialisation and labour in the Australian commercial construction industry," The Economic and Labour Relations Review, , vol. 28(4), pages 500-518, December.
    3. Delphine Brochard & Corinne Perraudin, 2017. "Crisis adjustment strategies in France: The contribution of establishment-level data," Post-Print hal-03227744, HAL.
    4. Nadine Thevenot & Maé Geymond & Coralie Perez & Corinne Perraudin & Julie Valentin & Francois-Xavier Devetter, 2021. "Entreprise éclatée et périmètre de la représentation collective," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03239648, HAL.
    5. Laurence Lizé, 2021. "Conditions de travail dans la sous-traitance : une enquête auprès de salariés du nettoyage et de la sécurité," Post-Print hal-03217182, HAL.
    6. Corinne Perraudin & Nadine Thevenot & Sophie Dessein, 2022. "Conditions de travail et préventions des risques professionnels dans le travail en sous-traitance : une étude quantitative," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03239644, HAL.
    7. Corinne Perraudin & Nadine Thevenot & Sophie Dessein, 2022. "Conditions de travail et préventions des risques professionnels dans le travail en sous-traitance : une étude quantitative," Working Papers hal-03239644, HAL.
    8. Eileen Appelbaum, 2017. "Domestic Outsourcing, Rent Seeking, and Increasing Inequality," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(4), pages 513-528, December.
    9. Delphine Brochard & Corinne Perraudin, 2017. "Crisis adjustment strategies in France: The contribution of establishment-level data," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 494-495-4, pages 201-217.
    10. Delphine Brochard & Corinne Perraudin, 2017. "Crisis adjustment strategies in France: The contribution of establishment-level data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03227744, HAL.

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