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Workforce Segmentation in Germany: From the Founding Era to the Present Time

Listed author(s):
  • Eichhorst, Werner

    ()

    (IZA)

  • Kendzia, Michael J.

    ()

    ((CEE) Centre D'Ètudes de L'Emploi)

Despite a more recent debate about ever deeper segmentation, we argue that since industrialization, Germany has continually experienced a dual labor market. One segment contains the primary segment of better paid and more attractive jobs, while the secondary segment encompasses rather low paid, less stable and less attractive jobs. It has been argued that this dualization is the result of firms which are likely to hire full-time and long-term workforce for its core activities performed by the core workforce while relying on more flexible forms of employment for other activities. Based on an in-depth examination of the structure of the workforce since the founding of the German state, this paper seeks to explore the factors which account for the origin, evolution and the peculiarities of the country's core workforce. It will be shown that a non-negligible part of the working population has always been subjected to marginalization, but that the dividing line between the two segments has changed over time as has the character of the respective groups.

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File URL: http://ftp.iza.org/dp8648.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8648.

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Length: 26 pages
Date of creation: Nov 2014
Publication status: published in: Journal for Labour Market Research, 49 (4), 2016, 297–315
Handle: RePEc:iza:izadps:dp8648
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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

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  1. Dickens, William T & Lang, Kevin, 1988. "The Reemergence of Segmented Labor Market Theory," American Economic Review, American Economic Association, vol. 78(2), pages 129-134, May.
  2. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
  3. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 879-907.
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  6. Kendzia Michael J. & Zimmermann Klaus F., 2013. "Celebrating 150 Years of Analyzing Fertility Trends in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(3), pages 406-422, June.
  7. Arne L. Kalleberg, 2001. "Organizing Flexibility: The Flexible Firm in a New Century," British Journal of Industrial Relations, London School of Economics, vol. 39(4), pages 479-504, December.
  8. Rubery, Jill, 1978. "Structured Labour Markets, Worker Organisation and Low Pay," Cambridge Journal of Economics, Oxford University Press, vol. 2(1), pages 17-36, March.
  9. Eichhorst, Werner & Tobsch, Verena, 2014. "Not So Standard Anymore? Employment Duality in Germany," IZA Discussion Papers 8155, Institute for the Study of Labor (IZA).
  10. Patrick A. Puhani, 2015. "Employment industry and occupational continuity in Germany: from the Nazi regime to the post-war economic miracle," Applied Economics Letters, Taylor & Francis Journals, vol. 22(8), pages 603-612, May.
  11. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
  12. Bruno, Sergio, 1979. "The Industrial Reserve Army, Segmentation and the Italian Labour Market," Cambridge Journal of Economics, Oxford University Press, vol. 3(2), pages 131-151, June.
  13. William T. Dickens & Kevin Lang, 1985. "Testing Dual Labor Market Theory: A Reconsideration of the Evidence," NBER Working Papers 1670, National Bureau of Economic Research, Inc.
  14. Zimmermann, Klaus F. & Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda, 2013. "Youth Unemployment and Vocational Training," Foundations and Trends(R) in Microeconomics, now publishers, vol. 9(1–2), pages 1-157, December.
    • Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "Youth Unemployment and Vocational Training," IZA Discussion Papers 6890, Institute for the Study of Labor (IZA).
  15. Anna Pollert, 1988. "The `Flexible Firm': Fixation or Fact?," Work, Employment & Society, British Sociological Association, vol. 2(3), pages 281-316, September.
  16. Eichhorst, Werner & Marx, Paul & Tobsch, Verena, 2013. "Non-Standard Employment across Occupations in Germany: The Role of Replaceability and Labour Market Flexibility," IZA Discussion Papers 7662, Institute for the Study of Labor (IZA).
  17. Gallie, Duncan & White, Michael & Cheng, Yuan & Tomlinson, Mark, 1998. "Restructuring the Employment Relationship," OUP Catalogue, Oxford University Press, number 9780198294412.
  18. 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).
  19. Piore, Michael J, 1983. "Labor Market Segmentation: To What Paradigm Does It Belong?," American Economic Review, American Economic Association, vol. 73(2), pages 249-253, May.
  20. Eichhorst, Werner & Marx, Paul, 2009. "From the Dual Apprenticeship System to a Dual Labor Market? The German High-Skill Equilibrium and the Service Economy," IZA Discussion Papers 4220, Institute for the Study of Labor (IZA).
  21. Anke Hassel, 2014. "The Paradox of Liberalization — Understanding Dualism and the Recovery of the German Political Economy," British Journal of Industrial Relations, London School of Economics, vol. 52(1), pages 57-81, 03.
  22. Emmenegger, Patrick & Marx, Paul, 2010. "Employer Preferences and Social Policy: Business and the Development of Job Security Regulations in Germany since World War I," IZA Discussion Papers 5043, Institute for the Study of Labor (IZA).
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