Whatever Works: Dualisation and the Service Economy in Bismarckian Welfare States
The paper compares employment structures in five Continental welfare states. These countries feature broad similarities in their reliance on a more dualised model of labour market flexibility, particularly in service occupations with low skill requirements. However, a closer look also reveals considerable differences between national patterns of standard and non-standard work. In Germany (and to a lesser extent Austria), marginal part-time provides a fertile ground for low-paid service jobs, as non-wage labour costs are minimised. In France, fixed-term contracts are a flexible and also cheaper alternative to permanent contracts, especially for younger workers. Dutch service sector employers follow an eclectic approach, as can be seen from high shares of self-employed and part-timers, as well as temporary workers. Finally, Belgium has large proportions of very low-skilled, own-account self-employed and involuntary fixed-term contracts. On the basis of these results, we identify four transformative pathways towards a more inclusive or flexible labour market: growing wage dispersion, defection from both permanent full-time employment as well as from dependent employment, and government-sponsored labour cost reductions.
|Date of creation:||Jun 2010|
|Publication status:||published in: P.Emmenegger et al. (eds.): The Age of Dualization, Oxford: 2012, 73-99|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fabien Postel-Vinay & Eric Maurin, 2005. "The European job security gap," Post-Print halshs-00754090, HAL.
- Michael Kvasnicka, 2009.
"Does Temporary Help Work Provide a Stepping Stone to Regular Employment?,"
NBER Chapters,in: Studies of Labor Market Intermediation, pages 335-372
National Bureau of Economic Research, Inc.
- Michael Kvasnicka, 2008. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Working Papers 13843, National Bureau of Economic Research, Inc.
- Cockx, Bart & Van der Linden, Bruno, 2009. "Flexicurity in Belgium: A Proposal Based on Economic Principles," IZA Policy Papers 9, Institute for the Study of Labor (IZA).
- B. Cockx & B. Van Der Linden, 2009. "Flexicurity in Belgium A Proposal Based on Economic Principles," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/584, Ghent University, Faculty of Economics and Business Administration.
- Bart COCKX & Bruno VAN DER LINDEN, 2009. "Flexicurity in Belgium. A Proposal Based on Economic Principles," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Bart Cockx & Bruno Van der Linden, 2009. "Flexicurity in Belgium. A Proposal Based on Economic Principles," CESifo Working Paper Series 2655, CESifo Group Munich.
- Tito Boeri & Pietro Garibaldi, 2007. "Two Tier Reforms of Employment Protection: a Honeymoon Effect?," Economic Journal, Royal Economic Society, vol. 117(521), pages 357-385, 06.
- Tito Boeri & Pietro Garibaldi, 2007. "Two Tier Reforms of Employment Protection: A Honeymoon Effect?," Carlo Alberto Notebooks 37, Collegio Carlo Alberto.
- Sarah Brown & John G. Sessions, 2005. "Employee Attitudes, Earnings and Fixed-Term Contracts: International Evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(2), pages 296-317, July.
- Eichhorst, Werner & Marx, Paul, 2009. "Reforming German Labor Market Institutions: A Dual Path to Flexibility," IZA Discussion Papers 4100, Institute for the Study of Labor (IZA).
- O Blanchard & A Landier, 2002. "The Perverse Effects of Partial Labour Market Reform: fixed--Term Contracts in France," Economic Journal, Royal Economic Society, vol. 112(480), pages 214-244, June.
- John Armour & Simon Deakin & Priya Lele & Mathias Siems, 2009. "How Do Legal Rules Evolve? Evidence from a cross-country Comparison of Shareholder, Creditor and Worker Protection," Working Papers wp382, Centre for Business Research, University of Cambridge.
- Jean Pisani-Ferry, 2003. "The Surprising French Employment Performance: What Lessons?," CESifo Working Paper Series 1078, CESifo Group Munich.
- Eichhorst, Werner & Hemerijck, Anton, 2008. "Welfare and Employment: A European Dilemma?," IZA Discussion Papers 3870, Institute for the Study of Labor (IZA).
- Danielle Venn, 2009. "Legislation, Collective Bargaining and Enforcement: Updating the OECD Employment Protection Indicators," OECD Social, Employment and Migration Working Papers 89, OECD Publishing.
- Wiemer Salverda & Ken Mayhew, 2009. "Capitalist economies and wage inequality," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 126-154, Spring. Full references (including those not matched with items on IDEAS)